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The Minister of Budget and Economic Planning, Atiku Bagudu, has absolved President Bola Tinubu of any blame in the scenario which played out over the failure of the National Assembly to confirm former Kaduna State Governor as a Minister.
Speaking during an interview with Premium Times, Bagudu submitted that Tinubu played his role by nominating El-Rufai for appointment, but going ahead to lobby the National Assembly after the former Governor was rejected, would be an abuse of power and lack of respect for the separation of power between the executive and the legislative arms of government.
The Minister added that President Tinubu was constitutionally handicapped and had to respect the decision of the lawmakers not to confirm El-rufai.
Naija News recalls that President Tinubu nominated El-Rufai for a ministerial appointment, but the National Assembly failed to confirm him after screening, citing a lack of security clearance.
El-Rufai later withdrew his interest in working for the Tinubu government.
“Constitutional democracy is based on separation of powers. The Senate has been given a constitutional role in the confirmation process. If they decide to deny any one of us, they are approving their confirmation power.”
“The president is handicapped by our constitution to do everything. Is it fair? But that is how the laws have been set up,” he stated.
Bagudu added that the president did everything constitutionally possible to have Mr El Rufai in his cabinet.
“I wish the National Assembly had confirmed him,” the Minister said.
When asked why President Tinubu did not intervene or lobby the National Assembly to confirm El-Rufai, Bagudu said he would not want to speculate, but for Tinubu to have nominated El-Rufai, it shows he wanted him as part of his government.
“What was done objectively is that the president nominated him. We know that his name was read at the Senate. He went to the National Assembly for screening. He answered all the questions that were asked of him. Although some were stepped down.
“So that’s an objective way to look at it. That is what happened. I can’t answer speculatively, but I believe for the president to submit your name, for you at least to be taken to the National assembly, it’s the best measure of the president’s willingness and confidence in the person,” he said.
The Federal Government is poised to receive fresh loan funding from the World Bank, with approval expected for loans totalling $2.25bn on June 13, 2024.
The funding will be received via two major development projects. The first project is the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing, which is set to receive $1.5bn.
The second project, NG Accelerating Resource Mobilization Reforms Programme-for-Results, has proposed funding of $750m.
Recall that The PUNCH had indicated that the government might reintroduce previously suspended telecom tax and other fiscal measures in pursuit of securing the $750m loan.
A copy of the plan’s document posted on the World Bank website indicated that the government might reintroduce the excises on telecom services, and EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.
However, the latest information suggests that the administration may have nearly guaranteed the loan.
The Minister of Finance, Wale Edun, at the spring meetings of the International Monetary Fund and the World Bank last month, had announced that the nation had qualified for processing a loan, described as ‘virtually a grant’ of $2.25bn from the World Bank at one per cent interest rate.
The package, approved by the Board of Directors of the World Bank, offers a 40-year term with a 10-year moratorium and a nominal one per cent interest rate.
He stated, “We have qualified for the processing just this week to the Board of Directors of the World Bank of a total package of $2.25bn of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for about 10- 20 years moratorium and about one per cent interest.”
According to programme information documents posted on the international lender website, the two projects aim to enhance Nigeria’s economic stability and resource mobilisation capabilities.
It is expected that the funds will bolster Nigeria’s efforts in reforming economic policies and enhancing government resource mobilisation, essential for the country’s long-term financial sustainability and economic resilience.
The document stated that the primary aim of the PforR programme is to boost non-oil revenues and safeguard oil and gas revenues from 2024 to 2028 at the federal level, emphasising substantial tax, excise, and administrative reforms.
The programme includes three main result areas: implementing tax and excise reforms to increase VAT collections and excise rates on health and environmentally friendly products, strengthening tax and customs administrations to enhance VAT compliance and effectiveness of audits, and safeguarding oil and gas revenues by increasing transparency and net revenue contributions.
The PforR programme includes technical assistance, supporting the Federal Inland Revenue Service and the Nigeria Customs Service to enhance taxpayer and trader compliance.
“The principal programme development objective is to raise non-oil revenues and safeguard oil and gas revenues. This result area aims to increase the transparency of NNPCL’s financial and operational performance through audits and regular production of enhanced reports submitted to FAAC, including all relevant information; and increase net oil and gas revenues transferred to the Federation,” the report read.
Also, the proposed DPF for Nigeria consists of a standalone operation with two tranches designed to support significant reforms in alignment with the government’s economic stabilization and recovery priorities.
This operation is structured around four key results distributed across two pillars: increasing fiscal oil revenues from 1.8 per cent of Gross Domestic Product in 2022 to 2.7 per cent by 2025, boosting non-oil fiscal revenues from 5.3 per cent to 7.3 per cent over the same period, expanding social safety nets to assist 67 million vulnerable Nigerians, and raising the import value of previously banned products from $11.3m to $54.6mby 2025.
The Socio-Economic Rights and Accountability Project (SERAP), BudgIT and 136 concerned Nigerians have filed a lawsuit against the Central Bank of Nigeria (CBN).
Naija News reports that the suit was filed over the CBN’s failure to withdraw the patently unlawful ‘Circular’ directing all banks and other financial institutions to deduct from customers’ account a ‘cybersecurity levy’.
Recall that the apex bank had last week directed banks to implement a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions, and to remit the levy to the ‘national cybersecurity fund.’ The CBN relied on the Cybercrime Act 2015 [as amended]. The directive is to be implemented by Monday, May 20, 2024.
In the suit number FHC/L/CS/822/2024 filed last Friday at the Federal High Court, Lagos, the Plaintiffs are asking the court to determine whether the CBN Circular directing financial institutions to deduct from customers’ accounts a cybersecurity levy is unlawful and therefore ultra vires the CBN.
The Plaintiffs are also asking the court to determine “whether the CBN Circular dated 6th May 2024, directing financial institutions to deduct from customers’ accounts a cybersecurity levy and section 44(2)(a) of the Cybercrimes Act are not in breach of sections 14(2), 44(1) and 162(1) of the Nigerian Constitution 1999 [as amended], and therefore unconstitutional, null, and void.”
The Plaintiffs are asking the court for “a declaration that the CBN Circular dated 6th May 2024 directing all banks and other financial institutions to deduct from customers’ accounts a cybersecurity levy is contrary to the provisions of the Cybercrimes Act and ultra vires the CBN, and therefore is illegal null and void.”
The Plaintiffs are seeking “an order of interim injunction restraining the CBN, its office, agents, privies, assigns, or any other persons acting on its instructions from enforcing the Circular dated 6th May 2024, pending the hearing and determination of the motion on notice filed contemporaneously in this suit.”
The suit filed on behalf of the Plaintiffs by their lawyer Ebun-Olu Adegboruwa, SAN, read in part: “The CBN Circular is unlawful and an outright violation of the provisions of the Nigerian Constitution and the country’s international obligations.
“Unless the reliefs sought are granted, the CBN will enforce its Circular directing banks to deduct from customers’ accounts a cybersecurity levy. Millions of Nigerians with active bank accounts would suffer irreparable damage from the unlawful deduction of cybersecurity levies from their accounts.
“The provisions of the Cybercrimes Act on payment of cybersecurity levy strictly apply only to businesses listed in the Second Schedule to the Act. These provisions make no reference to bank customers, contrary to the CBN Circular to all banks and other financial institutions.
“The Nigerian government has a legal responsibility to ensure the security and welfare of the people, as provided for under section 14(2)(b) of the Nigerian Constitution and human rights treaties to which Nigeria is a state party.
“The CBN Circular is also a blatant violation of Nigerians’ human rights including the right to property guaranteed under section 44 of the Nigerian Constitution and article 14 of the African Charter on Human and Peoples’ Rights to which Nigeria is a state party.
“We urge the Honourable to grant the reliefs sought in the public interest and the interest of justice as well as to prevent arbitrariness and ensure the rule of law in the country.
“Any deduction of cybersecurity levy from Nigerians’ accounts would be contrary to the provisions of section 44(2)(a) of the Cybercrimes Act 2015 as amended by the Cybercrimes Prohibition, Prevention etc) (Amendment) Act 2024 and ultra vires the CBN, and therefore illegal, null and void.
“Section 162 (1) of the Nigerian Constitution provides that all revenues collected by or on behalf of the Government of the Federation are mandatorily required to be paid into the Federation Account save the revenue excepted by the provisions of the section.
“The National Cybersecurity Fund established by section 44(1) of the Cybercrimes Act 2015 [as amended] into which it is required to be paid the levy of 0.5% chargeable on all electronic transactions instead of the Federation Account is unconstitutional, null, and void.
“The CBN Circular is a breach and misinterpretation of Sections 44(2)(a) and 58 of the Cybercrimes Act [as amended], in that it purports to incorporate customers of the bank (neither defined by the Act nor designated by the CBN as financial institutions) as those to pay the cybersecurity levy.
“The Plaintiffs are customers of commercial banks in Nigeria with accounts domiciled with many commercial banks in Nigeria. The CBN is the statutory agency charged with the overall control and administration of the monetary and financial sector policies of the Federal Government.
“The Plaintiffs are included in the statistics of Nigerians with active bank accounts as the Plaintiffs are owners of accounts in different Banks and other financial institutions.
“As of 30 April 2024, commercial banks in Nigeria already charge exorbitant fees for electronic transactions, including Electronic Transfer Charges at N53.75 on any amount above N10,000, Stamp Duty of N50 on every transaction and Account Maintenance Charge deducted per month.”
Naija News understands that no date has been fixed for the hearing of the suit.
Paul Ibe, the spokesperson of the Peoples Democratic Party (PDP) presidential candidate in the 2023 election, Atiku Abubarkar, has accused the Minister of the Federal Capital Territory (FCT), Nyesom Wike, of orchestrating Peter Obi’s move from PDP to the Labour Party (LP).
Naija News recalls that Peter Obi was the vice presidential candidate of the PDP in the 2019 presidential election but dumped the party for the LP ahead of the 2023 presidential election.
The former Governor of Anambra State later became a reckoning force in the last general election, securing over six million votes.
Since the PDP and Labour Party lost to the All Progressives Congress (APC) in the 2023 election, the leading opposition has yet to resolve its internal crisis.
In an interview with Nigerian journalist, Seun Okinbaloye, on the Mic On podcast, Paul Ibe disclosed that Atiku was ready to zone the PDP presidential ticket to the Southeast.
However, Wike frustrated the move, insisting that it must be zoned to the Southern region in general because of his personal interest, which forced Peter Obi to leave the party.
He said: “Wike had promoted the zoning of the presidency to the south. Atiku Abubakar had said that he was prepared to get himself off the ticket if the party zoned the ticket to the Southeast.
“Wike frustrated that effort because he believed that if it was zoned to the south, not the southeast, he would be in the best position to be able to get the ticket.”
I Made A Mistake With Fubara, Will Correct It At The Appropriate Time – Wike Opens Up On Rivers State Crisis
AFOLABI
The immediate past Governor of Rivers State, Nyesom Wike has shared some fresh details about the political crisis rocking the state.
Wike, who is the current Minister of the Federal Capital Territory (FCT), submitted that he made a mistake in supporting Governor Siminalayi Fubara to emerge as his successor.
Speaking on Saturday at the grand civic reception held at Ogu-Bolo in honour of Chief George Thompson Sekibo, Wike begged for God’s forgiveness as well as the people’s forgiveness for making an error in judgment.
Speaking further, the FCT Minister vowed to correct his mistake at the right time.
Wike said: ”I want to say this clearly, in life we have made a mistake. I have made a mistake. I own it up and I say God forgive me. I have said all of you forgive me. But we will correct it at the appropriate time. I am a human, I am bound to make a mistake. So forgive me for making a wrong judgement. So nobody should kill.”
Speaking further on the current political crisis rocking Rivers State, Wike called out the camp of Governor Fubara, saying no injunctions obtained at 2am or 4am would stop the law and due process from taking its course in the state.
“If they like they can go to anybody by 2am or 4am to get injunction. The law will take its course. We must follow due process,” Wike said.
The Minister of Works, Senator David Umahi, has said he is ready to undergo a probe over the controversy surrounding the Lagos-Calabar Coastal Highway project.
He said there was nothing to hide about the project, stating that due process was followed and the necessary approvals and documentation were obtained for the project to commence.
Recall that the House of Representatives on Thursday resolved to probe the N15 trillion project and said it would set up an ad hoc committee to investigate the project and submit a report within four weeks.
The House’s resolution followed the adoption of a motion of urgent public importance moved during plenary by Austin Achado, the member representing Gwer East/Gwer West Federal Constituency of Benue State.
In a chat with The Punch, the minister said he is ready to face the House of Representatives committee set up to probe the project. Umahi added that he planned to ensure the exercise was televised live for all Nigerians to see.
The former Governor of Ebonyi State also said that former Vice President Atiku Abubakar’s claim that the loan obtained to complete the project did not follow due process was untrue.
Umahi, however, added that the matter was before the National Assembly, noting that he would not want to comment on it.
He said, “I am ready to face the National Assembly to defend the project. I will not want to say anything now until I meet with the senators and House of Reps members. It will be live, so you will also hear it. It will be live so that Nigerians will see it.”
Naija News reports that the highway project, which is a 700-kilometre turnpike infrastructure, has attracted commendation and condemnation since the Bola Tinubu administration approved it in February.
The 10-lane coastal road was designed to connect Lagos to Cross River, passing through Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom states before culminating in Calabar, the Cross River State capital.
EFCC’s Naira Directive: Foreign Minister Writes Embassies To Charge Visa Fees In Local Currency
AFOLABI
Foreign Affairs Minister Yusuf Tuggar has written all the foreign missions in the country to comply with the directive of the Economic and Financial Crimes Commission (EFCC) to charge payment for visa and consular services in naira instead of dollar.
Tuggar has already met with a few envoys who sought more clarifications on the EFCC’s advisory.
It was learnt that the EFCC advisory against dollar-denominated service was necessitated in part after some embassies adopted N1,800-N1,900 exchange rates to a dollar.
An embassy was found to have set up an account unit where visa applicants were paying cash in dollar for services outside the conventional banking system.
Some embassies are understood to have started implementing the EFCC’s advisory on naira policy for consular services.
It was gathered that the EFCC has entered into an understanding with the Central Bank of Nigeria (CBN) for prompt remittance of the funds generated by the embassies to their home countries at official rate.
In an April 5, 2024 advisory to the Foreign Affairs Minister, the EFCC Executive Chairman, Mr. Ola Olukoyede, had asked government to stop foreign missions in Nigeria from charging visa and other consular services in foreign denominations.
He also advised all embassies to adopt Nigeria’s regulatory regime in fixing the exchange rate of the cost of their services.
He said the commission has observed the violation of Section 20(1) of the Central Bank of Nigeria Act, 2007 which makes currencies issued by the apex bank the only legal tender in Nigeria.
A top source told newwmen that the Minister of Foreign Affairs asked all foreign missions to implement the EFCC advisory.
The source said: “The Federal Government has adopted the advisory of the EFCC which is backed by the CBN Act. In line with this, the Minister, Amb. Yusuf Tuggar, has formally written all embassies to charge and accept payment for visa and consular services in naira.
“In fact, the Ambassador of one of the missions collecting dollars for consular services demanded an audience with the Minister of Foreign Affairs for clarifications on the new policy. Tuggar, who met with the affected envoy, said there is no going back on the naira policy.
“But the EFCC has also reached an understanding with the CBN for the prompt remittance of all consular fees collected at the official exchange rate to the embassies or countries. The Federal Government will not default in remitting funds.”
It was gathered that the EFCC issued the advisory following discovery that some embassies had adopted N1,800 to N1,900 exchange rates for applicants for visa and consular services.
“Some embassies went beyond official and parallel market rates in fixing exchange rate for consular services. They were charging as high as N1,800 to N1,900,” one source said.
“A foreign mission was even collecting dollars in cash from visa applicants. The practice was outside the banking system.
“From feedback, some of the embassies are already charging for consular services, including visa, in naira. We will not relent in ensuring full compliance by all missions.
“There is a desk monitoring compliance with the naira-for-visa policy. Any infraction will be reported to the Federal Government through the Ministry of Foreign Affairs.”
The advisory, signed by the EFCC Executive Chairman, Mr. Ola Olukoyede, reads in part: “…I wish to notify you about the commission’s observation, with dismay, regarding the unhealthy practice by some foreign Missions to invoice consular services to Nigerians and other foreign nationals in the country in United States Dollar ($).
“This practice is an aberration and unlawful as it conflicts ‘with extant laws and financial regulations in Nigeria. Section 20(1) of the Central Bank of Nigeria Act, 2007 makes currencies issued by the apex bank the only legal tender in Nigeria.
“It states that ‘the currency notes issued by the Bank shall be the legal tender in Nigeria on their face value for the payment of any amount’.
“This presupposes that any transaction in currencies other than the naira anywhere in Nigeria contravenes the law and is therefore illegal.”
The commission added: “The refusal by some Missions to accept the Naira for consular service in Nigeria and also comply with foreign exchange regulatory regime in fixing the exchange of the cost of their services is not only illegal but represents an affront on the country’s sovereignty symbolised by the national currency. It undermines Nigeria’s monetary policy and aspiration for sustainable economic development.
“This trend can no longer be tolerated, especially in a volatile economic environment where the country’s macroeconomic policies are constantly under attack by all manner of state and non-state actors.
“In the light of the above, you may wish to convey the commission’s displeasure to all Missions in Nigeria and restate Nigeria’s desire for their operations not to conflict with extant laws and regulations in the country.
“Please accept, as always, the assurances of my highest consideration and respect.”
Attend to enquiries on money laundering, others within 24 hours, EFCC boss tasks bankers
The EFCC boss has also urged bankers to respond to the commission’s enquiries within 24 hours to aid its investigations.
“I don’t want to be charging banks alongside suspected criminals, because doing so can wreak havoc on the economy. It will even discourage investors from coming to the country,” Olukoyede said during a roundtable with compliance officers of banks in Ilorin, the Kwara State capital.
He added: “Our intention is to use the anti-corruption fight to bolster the economy. So, we must work together to save this country.”
Represented by acting Zonal Director, Ilorin Command Harry Erin, Pastor Olukoyede said: “We need to find a common ground to work together. You have a responsibility to fight corruption.”
The EFCC chair also expressed concerns over the use of fintech (private banking) by criminals to perpetuate crimes.
The anti-graft czar charged bankers to take the issue of “Know Your Customer” (KYC) and “Know Your Customer’s Business” (KYCB) seriously, as the two requirements would help to keep fraudulent customers on the radar.
Edison Ehie, Chief of Staff to Rivers Governor Siminalayi Fubara, has explained the reason behind the political crisis in the State.
According to Ehie, the issue in Rivers State started when a small group of political leaders wanted sole authority over the State’s resources.
He said this during a thanksgiving service on Saturday for the Supreme Court victory of the governor in Ahoada East Local Government Area of the state.
“The problem we have in the state is that 11 persons said they will control the resources of Rivers State. These 11 persons now called 20 others to allocate resources to themselves,” he said.
The jubilant thanksgiving, held at Western County High School Ahoada, began with a choir performance followed by a sermon, with the preacher admonishing Governor Fubara to remain dedicated to serving the people.
Ehie, spoke on behalf of Gov Fubara, warning the Governor should not be underestimated because of his age.
He said: “We are going to teach them a lesson of political arithmetic. What that small boy will do to you you’ll know that khaki no be leather.”
The depreciation of the naira continued over the weekend as the currency traded at N1,510 to a dollar at the parallel market and 1,466.31 at the official market.
The dollar-to-naira exchange rate increased by N40 between Thursday and Friday, having earlier closed at N1,426 to a dollar, according to the National Autonomous Foreign Exchange Market (NAFEM), the official exchange market.
Following a string of reforms and interventions by the Central Bank of Nigeria (CBN), the naira had, in recent times, firmed up against the dollar, exchanging below N1,000.
The dollar exchanged at N1,450 Friday morning but closed the day with N1,510 at the black market.
A Bureau De Change operator who spoke to our correspondent yesterday said: “We have seen more demand in recent times, and this is what is causing the increase. I can tell you also that there is no enough dollar supply, and this is why the rate is increasing.”
Daily Trust on Sunday reports that the CBN had sustained dollar sales to registered BDC operators under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON).
It had on April 23, 2024 sold dollars at a discounted rate of N1,021 per dollar, the second time in the month and fourth time in 2024 as part of measures to stabilise the naira.
In February 2024, the CBN announced the sale of $20,000 to each BDC at the rate of N1,301/$. Subsequently, it reduced the allocation by 50 per cent and sold FX at the rate of N1,251/$1.
Other reforms by the CBN included substantially clearing foreign exchange backlog, including airlines’ trapped funds and taking action to stop speculation with the raids on unregistered BDC operators.
Despite the interventions, the crisis has persisted as the naira was rated the world’s worst-performing currency over the last month, according to a Bloomberg report.
BDCs say dollars not available, seek amnesty for hoarders
Speaking to Daily Trust on Sunday yesterday, the president of the ABCON, Aminu Gwadabe, said it was unfortunate that the gains of recent reforms and interventions by the CBN were being reversed.
He confirmed that the exchange rate was N1, 490 as at yesterday and blamed the depreciation on inadequate supply of the dollar.
He said: “The real issue is still the question of liquidity. The dollar is not available; and there is dollarisation of the financial system. People are really worried about the inflation rate that is hitting deep into the value of the naira. Some people say it is better to buy dollars now than to keep the naira.”
He called for amnesty for those hoarding foreign currencies in their homes to bring them out.
“There is a need for amnesty. A lot of people still have dollars in their houses. It is a crisis and stormy period. Sometimes we would not just remain at maximum compliance, voluntary compliance is key to effective regulations.
“Over regulation is toxic to effective compliance. People who keep dollars at home should be given amnesty, with less questioning to ensure liquidity,” he stated.
Gwadabe also asked the CBN to open up other channels of supply to BDC operators, especially the autonomous window against the direct supply by the apex bank.
He added: “I am happy the foreign reserve is going up, but it is unfortunate that the gains achieved have been reversed, although there was a kind of stemming of the volatility with some of the policies the CBN has taken. Recall that naysayers have predicted that it would have been around N3,000 to a dollar.”
Experts suggest solutions
The chief executive officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, attributed the naira crisis to supply and demand imbalance.
According to him, as long as the demand outweighs the supply, the crisis will remain.
Yusuf, a former director-general of the Lagos Chamber of Commerce and Industry (LCCI) said: “The fundamental issue is still that of demand and supply. It is more of a supply issue. Also related to that is a confidence issue because if we are not able to supply consistently, it will affect confidence, and once confidence begins to weaken, speculative demand will kick in, and that will begin to pile pressure on the system.
“That’s why it is good to have a framework because exchange rate volatility is not good for any economy. We should not leave the currency to float completely. There should be a framework to stabilise it, even if it is at N1,500. Whatever it is, let’s have a framework to stabilise it.”
“We need to build the confidence that in the next three months, this thing is not likely to change much.”
He also said Nigeria must ramp up its oil production to take advantage of the current oil price.
An economist, Dr Oluseye Ajuwon, in an interview with our correspondent yesterday, said the CBN must trace the source of the foreign currency to track any illicit inflow.
He said: “It is purely a supply and demand issue. Once demand is more than supply, the price will continue to depreciate.
“The Central Bank should start doing what it needs to do by tracing money to know where it is coming from and where it is going.
“All the interventions of the CBN amount to just treating the issue at a surface level, it is not actually addressing the real issue.”
[DailyTrust]
President Bola Tinubu, through his Special Adviser on Media and Publicity, Ajuri Ngelale, has told the Minister of Federal Capital Territory, FCT, Nyesom Wike and others that he will not take sides in the ongoing crisis rocking Rivers State.
Ngelale said that anyone with the belief that President Tinubu would take their side in the political crisis would be disappointed.
The Special Adviser made the President’s position know during an interview on TVC, insisting that Tinubu won’t allow any attempt to frustrate the Rivers government.
“I believe that anyone who believes that by their actions, whether it’s from the Federal level, State level or the legislative branch in the State or the executive branch in the state, if they are banking on Mr. President to take sides on this matter, they’re mistaking and they’ll be disappointed,” he said.
“Mr. President will not do that. What he will do is to ensure that everybody has what they need in order to work.
“He will also ensure that any attempt to frustrate the operation of the Rivers State Government of conducting its affairs in a way that it would benefit the Rivers people, that’s obviously not going to be allowed by this President or anybody else.
“So, I think there’s a need for all stakeholders to understand that Mr President won’t take sides.”
[DailyPost]
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President Bola Tinubu has asked the Central Bank of Nigeria to suspend the implementation of the controversial cybersecurity levy policy and ordered a review.
This followed the decision of the House of Representatives, which, last Thursday, asked the CBN to withdraw its circular directing all banks to commence charging a 0.5 per cent cybersecurity levy on all electronic transactions in the country.
The CBN on May 6, 2024, issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.
According to the Act, a levy amounting to 0.5 per cent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser.
Financial institutions are required to apply the levy at the point of electronic transfer origination.
The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution. All financial institutions are required to start implementing the levy within two weeks from the issuance of the circular.
By implication, the deduction of the levy by financial institutions should commence on May 20, 2024.
However, financial institutions are to make their remittances in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.
The circular also stipulates a timeframe for financial institutions to reconfigure their systems to ensure complete and timely submission of remittance files to the Nigeria Interbank Settlement Systems Plc as follows: “Commercial, Merchant, Non-Interest, and Payment Service Banks – Within four weeks of the issuance of the Circular.
“All other Financial Institutions (Microfinance Banks, Primary Mortgage Banks, Development Financial Institutions) – Within eight weeks of the issuance of the Circular,” the circular noted.
The CBN has emphasised strict adherence to this mandate, warning that any financial institution that fails to comply with the provisions will face severe penalties. As outlined in the Act, non-compliant entities are subject to a minimum fine of two per cent of their annual turnover upon conviction.
The circular provides a list of transactions currently deemed eligible for exemption, to avoid multiple applications of the levy.
These are loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and intra-bank transfers between customers of the same bank.
Exemptions include other financial institutions’ transfers to their correspondent banks, interbank placements, banks’ transfers to CBN and vice versa, inter-branch transfers within a bank, cheque clearing and settlements, letters of credit, and banks’ recapitalisation-related funding.
Others are bulk funds movement from collection accounts, savings, and deposits including transactions involving long-term investments such as treasury bills, bonds, and commercial papers, and government social welfare programmes transactions.
These may include pension payments, non-profit and charitable transactions including donations to registered non-profit organisations or charities, educational institutions transactions, including tuition payments and other transactions involving schools, universities, or other educational institutions, and transactions involving the bank’s internal accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
The introduction of the new levy sparked varied reactions among stakeholders as it is expected to raise the cost of conducting business in Nigeria and could potentially hinder the growth of digital transaction adoption.
‘Stop levy now’
Members of the House of Representatives on Thursday asked the Central Bank of Nigeria to withdraw the circular directing financial institutions to commence implementation of the 0.5 per cent cybersecurity levy, describing it as “ambiguous”.
The development was in response to a motion on the urgent need to halt and modify the implementation of the cybersecurity levy, moved by Kingsley Chinda.
According to the House, the CBN is to withdraw the initial circular, and “issue a more understandable one”.
Chinda had drawn the attention of the House to multiple interpretations of the CBN directive against the specifications in the Cybersecurity Act.
The House then expressed worry, that the Act would be implemented in error if immediate steps were not taken, to address the concerns around the interpretation of the CBN directive and the Cybersecurity Act.
However, sources with knowledge of Tinubu’s position on the issue told Sunday PUNCH that the President was aware of the economic burden on Nigerians since his hardline economic reforms began last May, adding that he did not want to risk adding to the burden with more levies.
A senior presidency official who preferred not to be named told our correspondent, “The President is sensitive to what Nigerians feel. And he will not want to proceed with implementing a policy that adds to the burden of the people.
“So, he has asked the CBN to hold off on that policy and ordered a review. I would have said he ordered the CBN, but that is not appropriate because the CBN is autonomous. But he has asked the CBN to hold off on it and review things again.”
Another presidency official who preferred to remain anonymous as he was not authorised to speak on the issue said these discrepancies prompted the President to order a review.
“If you look at it, the law predates the Tinubu administration. It was enacted in 2015 and signed by Goodluck Jonathan. It is only being implemented now.
“You know he (Tinubu) was not around when that directive was being circulated. And he does not want to present his government as being insensitive. As it is now, the CBN has held off the instruction to banks to start charging people. So, the President is sensitive. His goal is not to just tax Nigerians like that. That is not his intention. So, he has ordered a review of that law.”
Tax reforms not to frustrate Nigerians — Shettima
Meanwhile, the Vice President, Kashim Shettima, on Saturday, said the tax reforms undertaken by the Bola Tinubu administration were not aimed to frustrate Nigerians but to sustain the country’s investment friendliness.
The VP, represented by his Special Adviser on General Duties Dr Aliyu Umar, spoke at the close-out retreat of the Presidential Fiscal Policy and Tax Reforms Committee held at the Transcorp Hilton, Abuja. Shettima’s Spokesperson, Mr Stanley Nkwocha, revealed this in a statement titled, ‘Our tax reforms initiated for overall benefits of Nigerians – VP Shettima’.
He argued that contrary to speculations in some quarters, “we are not here to frustrate any sector of our economy but to create an administrative system that ensures the benefits of a thriving tax system for all our citizens”.
Levy suspension welcome development – PDP
Reacting to the decision of the President, the Peoples Democratic Party’s National Publicity Secretary, Debo Ologunagba, welcomed the suspension of the cybersecurity levy policy implementation, noting that the policy should not have been introduced at all.
He said, “It was an anti-people decision from the beginning. It was an insensitive decision from the beginning. It was an ambush on the people who had already been frustrated by the multiple layers of taxes from the beginning. So, it was a very cruel introduction because you do not need to tax us to have cybersecurity.
“You do not need to tax the villagers or the people in the rural areas for cybersecurity. People who do not even have light. They don’t even have access to an internet connection. Well, if that is a show that the president is listening, then that is good. Then, he must now continue to listen more and begin to look at where the problem started and that is the issue of removal of subsidy without any cushioning of its effect. What will happen is that the president should go back further so that Nigerians can breathe by ensuring a policy that will reduce the hardship of the sudden removal of the subsidy.”
Also, reacting to the development, the Chief Executive Officer, Centre for Promotion of Private Enterprises, Dr Muda Yusuf, said the President’s decision shows he is a democrat, adding that the CBN should ensure that the reviewing process of the policy is very inclusive.
“The President’s decision is in line with the clamour by the people. There had been a lot of outcry about it and the fact that the president has responded shows that he is a democrat. It shows he is a listening leader. So we must commend him for listening to the voices of the people. It is a welcome development.
“The government should now look at the policy. I am sure it is not going to be only the CBN. Even the legislators should also look at it because they passed the law. But the key thing is that the policy needs to be reviewed. And the apex bank should take the review beyond the government level. It must consult the stakeholders and the organised private sectors. That is what will make the review very inclusive.”
Also speaking to Sunday PUNCH, the Director of Centre for Anti-corruption and Open Leadership, Debo Adeniran, said while President Tinubu should be commended for the decision, the Federal Government should consider a total cancellation of the policy instead of a temporary suspension.
He said, “This is the right step in the right direction. It further accentuates the fact that President Tinubu listens to the voice of the people. And maybe it is because he used to be an activist. He knows that the voice of the people is the voice of God.
“But then, the suspension of the policy is not enough. It should result in the total cancellation of the policy. All the taxes, rates, and levies that are being imposed on the people should be streamlined so that if we want to pay personal income taxes, we should know that that is what we are paying. It is not that the government will take off personal income taxes and we should now pay for every service that we should enjoy from the government. And the increase in micro-economic products like petroleum and others should be made cheaper and affordable for all Nigerians,” he stated.
Also, a professor of Economics at Olabisi Onabanjo University, Sheriffdeen Tella, cautioned the Federal Government against creating additional hardship for Nigerians. He said while the policy was not a bad idea, the timing was inappropriate.
He said, “There is nothing wrong with the levy but it was at the wrong time. The government should stop creating problems for itself. People are battling inflation and all sorts of inefficiency and you are imposing a tax on them. The president has done well by reversing it. It is not the right time to impose additional burdens on Nigerians. I commend the President for having the courage to do the right thing.”
SERAP threatens lawsuit
Meanwhile, the Socio-Economic Rights and Accountability Project threatened to file a lawsuit if the Federal Government did not withdraw the levy within 48 hours. The group stated that the levy “patently violates the provisions of the Nigerian constitution 1999 (as amended) and the country’s international human rights obligations and commitments”.
Labour rejects levy
However, the Nigeria Labour Congress stated that the cybersecurity levy and several other levies and taxes already imposed on the citizens had deepened the financial burden on the populace currently grappling with economic challenges.
A statement signed by the NLC President, Joe Ajaero, demanded the reversal of the directive by CBN, adding that the Federal Government should prioritise policies that alleviate the financial burdens of Nigerians. NLC said the move, which was ostensibly aimed at bolstering cybersecurity measures, could exacerbate the financial strain already faced by the populace.
•Says the beheading of one Alhaji sparked killings
•‘How sponsors of attack tried to eliminate me in prison custody
•Pleads for legal help to appeal the death sentence
•Miyetti Allah disowns latest mayhem
Eight years after the massacre of April 25, 2016, that left no less than 40 persons dead in Nimbo in the Uzo-Uwani local government area of Enugu State, the only person who was convicted for the mass murder, Mohamed Zurai, has confessed to his participation in the crime.
But he said he was complicit to the crime to the extent of video recording the killings and not killing anyone.
Zurai, a herdsman, told Sunday Vanguard that the Nimbo massacre was carried out because one Alhaji was beheaded by assailants in the Enugu community.
He spoke to our correspondent during an undercover operation in Enugu Correctional Center where he is waiting for the hangman’s noose.
Justice Anthony Onovo of the Nsukka Division of Enugu State High Court had, on May 17, 2023, pronounced the death sentence on him.
The murderer was among five suspects arraigned on May 9, 2017 for the mass murder in Nimbo on April 25, 2016.
They were charged with murder contrary to Section 274 (1) of the Criminal Code Cap 30 Vol II of the Revised Laws of Enugu State of Nigeria 2004.
Zurai was the prime suspect whose cell phone was found to have recorded the Nimbo killings.
Delivering judgment on the matter on May 17, 2023, Justice Onovo said, “In all, the only person who has been shown to have participated in the killing at Nimbo community on 25/4/2016 is the 1st defendant, Mohammed Zurai.
“He is hereby convicted as charged. The 2nd defendant (Alhaji Ciroma Musa) and the 3rd defendant (Sale Adanmu) not having been found guilty are hereby discharged and acquitted.”
According to him, many went for the operation but he used his phone to do a video recording of the killings in his image also appeared in the video as a selfie.
He disclosed that sponsors of the killings wanted to eliminate him while in prison custody, alleging that some persons were offered N300,000 to kill him so that he would not live to tell the story of what happened but that the request was turned down.
The murderer, who said there were over 20 that carried out the operation, however, denied killing anybody at Nimbo but said he was behind his colleagues and that his only job was to record the killings.
Zurai wondered why only he was convicted while his friends who were arraigned with him also participated in the operation but were freed.
He, therefore, pleaded for the telephone number of this reporter so that he could communicate with him afterwards since he agreed to help him get a lawyer who could appeal his death sentence.
Zuari looked 30 years old and fair in complexion.
MACBAN disowns fresh attack
Meanwhile, Miyetti Allah Cattle Breeders Association of Nigeria, MACBAN, has dissociated itself from the suspected herdsmen’s attack on the Nimbo community around the anniversary of the 2016 incident.
The latest attack came on Sunday, April 28 2024 and killed four members of the community.
The attack, which occurred at Ugwuijoro community where villagers had gathered to mourn the dead, also left many injured.
Reports had it that a member of the community was also shot dead at the nearby Opanda community, three days before the Nimbo incident.
The people of Uzo-Uwani LGA allege that there are many herdsmen camps around Ugboda, Adani and Opanda in the council area because of the thick forests there.
Governor Peter Mbah described the attack as unacceptable, vowing that the government would track down and bring the attackers to book.
Mbah footed the medical bills of the wounded people and awarded scholarships and jobs to bereaved family members while the Nimbo community asked the state government to strengthen their neighbourhood watch group.
MACBAN, dissociating itself from the attack, accused native security operatives of killing their members in the South-East.
National Deputy Director General of the group, Gidado Siddiki, who made the allegation, said their members and livestock had been targeted while he exonerated herdsmen of any wrongdoing in the zone, blaming kidnappings and other crimes committed in the bush and farmland in the zone on criminals.
Sidikki lamented that their markets had been indiscriminately destroyed under the guise of rooting out criminality, with no evidence of wrongdoing found on them, stating that even in the remote areas where they graze cattle, they face increasing threats from criminals without a response from the government or local leadership.
He appealed to the state governments in the South-East and leaders of host communities to recognize them as strategic stakeholders and refrain from “unfounded” attribution of wrongdoing to every herdsman out there.
[Vanguard]
The Army Headquarters has announced investigation into a viral footage showing soldiers protesting at the 8 Division Garrison detention facility in Sokoto.
The footage, circulating on social media, depicts personnel held in custody expressing grievances.
In a statement signed Saturday by Onyema Nwachukwu, Major General Director Army Public Relations, the Army regretted the incident adding that it would not condone the soldiers’ behaviour, which constitutes mutiny and misconduct.
According to the report, the Chief of Army Staff has ordered a probe to determine if the incident is isolated or widespread in similar facilities.
“Undoubtedly, the Sokoto barracks detention facility incident is quite unfortunate and an embarrassment to the sound administration efforts of the Chief of Army Staff (COAS), to say the least, and in line with his leadership style, the COAS has instituted an appropriate investigation into the incident to determine whether it is an isolated or widespread situation in similar detention facilities.
“While the service regrets and has gleaned some lessons from the incident, it will however not condone the manner the inmates expressed their purported grievance. Mutiny and conduct prejudicial to service order are grievous misconducts, and this very incident epitomises such.
“As such, as Army, on the one side, goes ahead to implement the COAS directive to look into the state of all NA detention facilities, as detainees’ lives also matter, the Service shall not shy away from appropriately sanctioning the soldiers involved in the unruly behaviour in its Sokoto detention facility for failing to exhaust all available options to channel their complaints to the appropriate authorities and if it was discovered they did and nothing was done, necessary administrative actions will be taken against anyone found to have failed to discharge his/her duties effectively.
“While the Service is mindful of its subjective oversight engagements by statutory bodies, it remains primarily a responsible, self-regulating professional body. As such, the Service remains committed to ensuring that everyone, even those found guilty of aiding terrorists, kidnappers, and bandits, and are awaiting confirmation of their sentencing, as it has been discovered in the Sokoto case is accorded a relatively decent life until their judgment is confirmed and executed. This commitment underscores the NA’s dedication to upholding professional standards and maintaining a just and fair system.
“The NA appreciates all Nigerians for their concern and support as well as pledge to remain focused on its drive to defeating security challenges facing the nation in conjunction with sister services and other security agencies,” the statement added.
…urges Tinubu to call Wike to order
The former National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, has said the Rivers State Governor Similaye Fubura, was being haunded by his political opponents for daring to prevent the looting of the state.
He explained that the political crisis in the state was orchestrated by those who demand unfettered access to the finances of the state a demand the governor has refused to accept.
Secondus who spoke in Abuja, on Saturday, also accused the immediate past Governor of the state and now Minister of the Federal Capital Territory, Nyesom Wike, of being the brain behind Fubura’s political troubles.
He explained that Wike’s conduct, utterances and unrelenting fued with the governor, has cast the state in bad light.
Secondus said, “Wike has been Governor for eight years and is now Minister of the FCT. As Minister, what, has he (Wike) attracted in terms of Federal projects to our dear State since he assumed office? Perhaps misery, grief, and anguish. As Governor he had supervised the exit of investors from the state due to his draconian policies.
“He had on an occasion mentioned that he is capable of causing crisis and he is not far from the truth, as he is causing an unfathomable crisis in Rivers State.
“Mrs Patience Jonathan and I worked for his emergence as governor, have we ever breathed down his neck? Instead what we get is disrespect and insults.
“ I can attest to Dr. Odili’s performance as Governor being the State PDP chairman then. I hasten to say without any fear of contradiction that he is the best governor of Rivers State in this dispensation.
“Wike claims that our revered Dr. Odili made him but in his characteristic manner, he publicly ridiculed the Odili’s without any justification. He owes them an unreserved apology and he should do so publicly.
“These media attacks against the political leaders of Rivers State are unwarranted and diversionary.
“For the records you should account for the three hundred million dollars($300m) you collected from the NNPC for the Ogoni Oil well and the cash refund made by the Saipem oil and gas company and subsequently account for your eight-year tenure of over N4Trillion realized, mismanaged and squandered. Rather than trying to cover your inadequacies through media attacks.”
These attacks, he stressed, might dovetail into a national crisis if not properly checked.
While appealing to President Bola Tinubu to reign in the FCT minister, Secondus added, “I call on President Bola Ahmed Tinubu, to prevail on the FCT Minister, Nyesom Wike to stop overheating the Rivers State political atmosphere and allow Fubara to work. Whatever Wike thinks he is It must be stressed that Rivers people made him.”