Business
CBN Gives MFBs June Deadline
The Central Bank of Nigeria (CBN) has given Micro Finance Banks (MFBs) June as deadline to embrace Information Technology infrastructure and shared services platforms in the conduct of their operations.
Dr Kingsley Moghalu, Deputy Governor, Banking System Stability, made this known when the National Association of Microfinance Banks (NAMB) paid him a courtesy visit.
This was contained in a statement issued by Alhaji Abdullahi Mohammed, Head, Corporate Affairs of the apex bank in Abuja on Saturday.
The statement noted that the infrastructure would enhance their operations and also assist in timely rendition of returns.
“June 2011 has been set as the deadline for the operators to comply with the directive on the IT infrastructure.
“The CBN is prepared to render any form of genuine assistance to the industry to ensure compliance,’’ it added.
The statement urged operators to collaborate and explore the opportunities offered by shared services initiative with a view to reducing their operational expenses drastically.
It said Moghalu advised the MFB operators to take corporate governance codes very seriously to enable them eschew any form of abuse such as insider related none-performing loans and violation of prudential guidelines.
“It is not in the best interest of the CBN to formulate policies that are inimical to the growth of MFBs.
“However, it is pertinent to sanitise the sector so as to realise the full potential of the sector as a veritable vehicle in the financial inclusion policy.
“The new microfinance policy framework will soon be released,’’ it stated.
It added that the new policy will address the misconception and proper understanding of microfinance, capital base, regulatory capacity framework and certification training, among others.
This, it held, would make MFBs play their role in the financial inclusion drive of the CBN.
It stated that the CBN is planning MFB fund to come on stream to support the industry and make it self-sustaining.
It also addressed the appeal by the operators to review the 20 per cent ceiling on the ratio of fixed assets to the total shareholders fund.
It explained that the purpose of the clause was to ensure that the operators had sufficient funds to operate with.
It explained that deploying the operators’ merger fund to the acquisition of fixed assets was not helpful to the MFBs liquidation position.
“Earlier, Chief Mathias Umeh, NAMB Chairman, appealed to the apex bank to assist in restoring public confidence in the sector that was eroded by the revocation of licenses of many MFBs in recent past.
“He urged the CBN to put in place a bail-out fund to assist in the timely recovery from shocks.
“Umeh also appealed to the apex bank to review the 20 per cent ceiling on the fixed assets as a ratio of shareholders funds as enshrined in the prudential guidelines as many operators have invested much in fixed assets like office buildings.
“He identified defaults in loan repayment as a major bane to growth of the industry.
“He commended the CBN for allowing the operators to make an input in the new microfinance policy framework,’’ added the statement.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.