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2019 Elections: CBN To Monitor Banks’ Lending To Politicians

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The Central Bank of Nigeria on Thursday said it would monitor the rate at which banks provide loans to politicians to finance their campaign spending ahead of the 2019 general elections.

The Governor of the CBN, Mr Godwin Emefiele, disclosed this while briefing journalists shortly after a two-day Monetary Policy Committee meeting which were held at the headquarters of the apex bank in Abuja.

Responding to a question on what steps the apex bank was taking to check excessive lending by banks to politicians, the governor said that the CBN would be monitoring their activities with a view to intervening when things are about to go wrong.

He expressed optimism that due to past experiences, Deposit Money Banks would not want to take excessive risks by increasing their lending exposure to politicians.

Emefiele said that while banks have their own risk assessment criteria, the apex bank would be closely monitoring their activities so as to protect the banking sector.

He said that the CBN had met with chief executives of banks and during the meeting; they were warned on the dangers of involving in money laundering activities.

The CBN boss said that for any bank that is caught in money laundering activities; the apex bank would not hesitate to impose the appropriate sanction on such bank.

He said, “We have had meetings with the banks and we have asked them to be very careful on money laundering issues, and I believe they will be careful themselves because they know that if they are caught, it means that they will be heavily penalised.

“When you talk about lending to politicians, banks have their risk acceptance criteria and I don’t think that the banks would do that at this time. Everybody must have learnt their lessons.

“We at the Central Bank we are watching. When things go wrong or about to go wrong, we will deal with it as appropriately as possible.”

On the MTN $8.1bn controversy, he said that apex bank had met with top executives of the company who came in from South Africa on the issue.

He said very soon, a final decision of the apex bank on the matter would be announced.

Emefiele said apart from MTN, no other company in Nigeria was under investigation for irregular Certificates of Capital Importation.

He said, “We are in a process where we are saying this matter will be resolved. We have held meetings with the MTN Group.

“They flew in from South Africa and we have held meetings and we are at the verge of making announcement on what the agreements are. I am very optimistic that we have reached the end of the road on this subject.

He added, “The sanctity of our CCI is sacrosanct and no other company is being investigated on the issue of CCI. No other person is being investigated on the issue of CCI. This is an isolated matter.”

On the Monetary Policy Rate, the governor said the Monetary Policy Committee left the rate unchanged at 14 per cent.

He explained that all the 11 members of the committee that attended the meeting agreed to maintain the current monetary policy stance

He said apart from the MPR which was retained at 14 per cent, the committee also retained the Cash Reserves Ratio at 22.5 per cent. Also retained are the Liquidity Ratio which was left at 30 per cent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.

Explaining the rationale to hold the MPR at 14 per cent, the governor said, “The committee continues to hold the view that although loosening will encourage the flow of credit to the real sector, help in the reduction of aggregate cost of credit on small business spending and investment, it, however, believes that doing so will reverse more rapidly the gains of pro and exchange rate stability achieved so far.”

He said while the rate of inflation had been trending downward, there were still some risks in the short term.

He gave some of these risks as destruction of agricultural products from flooding, insurgency in the North-East, herdsmen and farmers’ crises, high cost of energy, anticipated spending in the run up to the Christmas festivities and campaign relates spending towards the upcoming general elections.

He said there was need to come up with measures to address these challenges as well as to ensure speedy implementation of the budget.

On the issue of minimum wage, the CBN governor explained that the increase in wages would boost aggregate demand in the economy.

Emefiele also said the apex bank was working on a new initiative to channel the flow of credit to small businesses in the rural areas.

He said, “The committee urged the bank to deepen and broaden access to finance to high employment elastic sector with particular emphasis on small and medium enterprises.

“The committee called on the bank to extend the success recorded under the Anchor Borrowers’ Programme to other items including fish and palm oil by introducing more stringent measures to curb access to foreign exchange for products that can be produced in Nigeria.”

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Access Bank Appoints Uche Orji as Independent Non-Executive Director

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Access Bank Appoints Uche Orji as Independent Non-Executive Director

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Holdings Plc (‘the Company’) is pleased to announce the appointment of Mr. Uche Orji as an Independent Non-Executive Director of its flagship subsidiary, Access Bank Plc (‘the Bank’), effective from January 7, 2025, following the approval of the Central Bank of Nigeria (‘CBN’).

This appointment reflects our commitment to enhancing our governance practices and ensuring a diverse and experienced board.

Mr. Orji is a renowned investment banking professional, information technology entrepreneur, and finance expert with three (3) decades of professional and board experience. He is the Co-founder and Partner of Titangate Capital Management, an equity firm that invests in deep-tech, enterprise software, semi-conductors, hardware, and artificial intelligence companies.

He is the Founder and Director of Vitesse Africa Limited, an investment advisory firm focused on African energy, technology and infrastructure sectors. He serves as an Executive Board member and investor in Ultrasafe AI, an artificial intelligence/IT development firm that maintains strategic collaborations with leading technology companies. He also sits on the Board of Private Infrastructure Development Group, London, and chairs the Risk Committee.

Previously, Mr. Orji served as the founding Managing Director and Chief Executive Officer of Nigeria Sovereign Investment Authority. He held positions as Managing Director and Senior Analyst at UBS Securities Limited New York and Managing Director and Head of European Technology/Semiconductor Equity Research at JP Morgan Securities, London. He also served as Executive Director/Portfolio Manager at Goldman Sachs Asset Management, London. Earlier in his career, he was Acting Financial Controller at Diamond Bank Limited and an Audit Trainee at Arthur Andersen & Co.

He holds a Bachelor of Engineering Degree in Chemical Engineering from the University of Port-Harcourt and a Master of Business Administration from Harvard Business School.

Commenting on the appointment, Mr. Paul Usoro, SAN, the Chairman of the Bank said:

“Mr. Orji has been appointed based on his exceptionally rich professional, academic, and corporate board experience which will be invaluable to the Bank as we continue to pursue our strategic objectives.

We are confident that his addition to the Board would further enrich the quality of our decision-making process, enabling us to deliver even greater value to our customers and stakeholders.

His appointment has been made in accordance with the Bank’s internal policies and has been notified to all relevant regulatory authorities underscoring our commitment to upholding the highest standards of corporate governance.

On behalf of the Board, Management and staff, I warmly welcome Mr. Orji to the Board and look forward to his contributions towards our goal of becoming one of the top 5 African Banks in the shortest possible time.”

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Go and List Your Challenges, Lagos Speaker tells NANS Member During Courtesy Visit

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Go and List Your Challenges, Lagos Speaker tells NANS Member During Courtesy Visit

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The National Association of Nigerian Students (NANS), Lagos State University (LASU) branch, on Friday paid a courtesy visit on the Speaker of the Lagos State House of Assembly, Princess Mojisola Lasbat Meranda.

The student representatives said the visit was to congratulate Meranda over her emergence as Speaker of the State Assembly.

Meranda, an alumnus of LASU, was elected Speaker on January 13 after the removal of Mudashiru Obasa by the lawmakers over issues relating to alleged high-handedness and financial impropriety.

Describing her as a thoroughbred Lagosian, the chairman of NANS, Abdulraheem Azeez, used the opportunity to list some of the challenges faced by students in the university.

According to him, students have had to read in darkness as the Ikeja campus gets less than two hours of power supply daily.

Azeez also raised the need for the State to make available loans for indigent students as well as for the Assembly to provide opportunities for students to witness the plenary of the House.

Meranda, while thanking the students for the visit, urged them to always attend town-hall meetings in their constituencies where they can contribute and make their opinions known.

She further encouraged them to apply for the loans initiated by the government as done by students in other countries.

The Speaker requested the students to formally send their complaints in written forms to the House for action.

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EFCC Tasks Corps Members on Corruption

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

EFCC Tasks Corps Members on Corruption

The Executive Chairman of the Economic and Financial Crimes Commission, EFCC, Mr. Ola Olukoyede charge members of the National Youth Service Corps, NYSC, to be change agents and strong resisting force against corruption.

He also enjoined them to be active foot soldiers and whistle-blowers or intelligence-gatherers against corruption.

Speaking on Thursday, January 30, 2025 at the NYSC Orientation Camp, Yikpata, Edu Local Government Area of Kwara State, Olukoyede said It is important for youths to realise that, these roles, if performed creditably, will bring up appreciable growth in the economy of our nation. He said that, “creative energies of youths will be maximised when corruption is brought to its knees.”

The EFCC boss whose address was delivered by the Head, Public Affairs Department, Ilorin Zonal Directorate of the EFCC, Ayodele Babatunde said that most of the problem confronting the country such as kidnapping, banditry, poor infrastructure, among others were connected to corruption. He added that all hands must be on the deck to tame the cankerworm.

Olukoyede encouraged the youths to embrace the virtues of hard work and shun fraudulent practices such as cybercrime noting that, “it’s profitable to earn dignity and fame through hard work and legit business.”

While calling on the youths to channel their potentials productively and shun crime, the EFCC Chair said that, “Yahoo-Yahoo is not a sustainable way of life.”

“There is no shortcut to wealth and fame. The fact that the rate of unemployment is high should not be an excuse to resort to crime. Act of criminality might deliver wealth in the short term but there will be misery and gnashing of teeth”, he said.

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