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In New CBN Law, Senate Pegs 6 Years-single Term For Governor

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1 year ago

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In a new law been propose, the National Assembly is seeking to make the Central Bank of Nigeria (CBN) Governor’s tenure six year of one term.

The amendment of the CBN Act 2007, will foreclose a renewable term of the head of the apex bank and make it a single term of six years.

The national assembly through the Senate is also proposing N1 Trillion recapitalization for commercial banks which presently stands at N100 billion.

As the Senate moves for sweeping reforms in the organisation, administration and function of CBN through an amendment bill read for second reading in plenary on Tuesday, its committee on Banking, Insurance and other Financial Institutions, screened nominees for board of Directors of the Bank.

Proposal for six year single term for CBN Governor, Deputy Governors and members of board of Directors, was contained in a bill seeking for amendment of CBN Act 2007 and sponsored by Adetokunbo Abiru (APC Lagos East) in his capacity as Chairman, Senate Committee on Banking.

Abiru in his lead debate on the bill co – sponsored by 41 other members of the committee , said six years single term for CBN Governor , Deputy Governors and board of Directors , said it was geared towards reducing political influence on them .

“The Bill proposes to amend this provision to provide a single non-renewal term of 6 years for the Governor and the Deputy Governors.

“This is the practice adopted by many independent Banks such as the US Federal Reserve and the European Central Bank where their Chief Executive Officers serve only one non-renewable term.

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” Empirical evidence shows that a single term for the members of the Executive and Board members of central banks helps to reduce political influence on monetary policy decisions and the time inconsistency problem associated with non-independent central banks,” he said.

On N1 Trillion recapitalization, Abiru in the bill said the proposal seeks to provide that the paid-up capital of the Bank shall be 1 Trillion Naira and may be increased from time to time by such amount as the Government may approve either by way of transfers from the General Reserve Fund or by such other means as the Government, in consultation with the Board, may approve.

The bill also seeks for creation of Coordinating Committee for Monetary and Fiscal Policies since the extant act made no provision for such.

He said: “The current Act made no provision for coordination of monetary and fiscal policies which is the reason that monetary policies of the Bank often diverge from fiscal policies to the detriment of the economy.

“To this end, the Bill introduces for the purpose of coordination of the monetary, fiscal and trade policies, a Coordinating Committee for Monetary and Fiscal Policies.

“The functions of the Committee shall include: setting internally consistent targets of monetary and fiscal policies that are conducive to controlling inflation and promoting financial conditions for sustainable economic growth; Applying caps to any fiscal deficit at a level that can be financed without having recourse to direct monetary financing from the Bank etc.

It also seeks to regulate the issuance of Ways and Means by CBN to the Federal Government .

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Specifically as proposed in the bill, while the current CBN Act, empowers the CBN to grant temporary advances to the Federal Government to finance unexpected shortfall in budget revenue without stated time frame , the proposed law wants the advance not to exceed five per cent of the previous year’s actual revenue of the Federal Government and it is to be paid back at the end of the financial year in which it was granted.

“In order to firm up this provision and prevent a repeat of the recent experience in which the Bank’s Ways and Means have fueled inflation and significantly distorted economic management, the Bill proposes the following: any such direct advance to the Government should not exceed 10% of average government actual revenues during the preceding three years.

“For the purpose of determining the government’s actual government revenue, proceeds from asset sales shall be excluded to avoid capturing revenues from exceptional items.

“Such temporary loans should be repaid in full within three months from the date it is made available. This is consistent with global practice.

“The current provision which stipulates before the end of the fiscal year is prone to abuse as it creates a window for the government to obtain overdrafts from the Bank in January and wait until December to make repayment.

“In order to minimize default risk, any sum which becomes outstanding at the end of the expiration of the credit period should be held against and recovered from the proportion of the Federal Government’s FAAC Receipts”, he explained.

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Members of Board of CBN Directors screened on Tuesday were Mr. Robert Agbede, Mr. Ado Yakubu Wanka and Mrs Muslimat Olanike Aliyu.

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NLC Rejects Electricity Tariff Adjustment, Sets For Protest

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13 hours ago

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March 2, 2025

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By Abubakar Yunusa

The Nigeria Labour Congress (NLC) has rejected plans by the Federal Government to regularise electricity tariffs for customers for Bands A, B and C.

In a communique released on Sunday after the National Executive Council (NEC) in Yola, Adamawa State, the labour union vowed to lead mass nationwide protests across Nigeria should the government continue with its plan.

Last Thursday, Minister of Power, Adebayo Adelabu, said lower bands would be upgraded to Band A.

In its communique sign by NLC General Secretary, Emmanuel Ugboaja, the labour union rejected the “forcefully migration” of consumers from lower bands to Band A.

“On the Migration of Electricity Consumers with a view to increasing tariff: NEC unequivocally rejects the ongoing sham reclassification of electricity consumers by the Nigerian Electricity Regulatory Commission (NERC), which seeks to forcefully migrate consumers from lower bands to Band A under the guise of service improvement while, in reality, imposing unjustified extortion on the masses,” the NLC declared.

“This systematic exploitation, sanctioned by the Ministry of Power, is nothing short of economic violence against the working class and broader Nigerian populace.

“It is evident that the ruling elite, acting as enforcers of global monopoly capital, are determined to further deepen the misery of the Nigerian people through incessant tariff hikes, increased taxation, and relentless economic strangulation.

“Whereas inflation has soared, wages remain stagnant, and the cost of living has become unbearable, the ruling class continues to transfer the burden of their fiscal irresponsibility onto the already impoverished working masses.

“NEC-in-session warns that any attempt to announce further electricity tariff increases will be met with mass resistance.

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“Consequently, the Congress resolves to immediately mobilise for a nationwide protest should the Ministry of Power and NERC proceed with their exploitative plan to further hike electricity tariffs under any guise.

“The NLC shall not stand idly by while the Nigerian people are subjected to the unholy machinations of capitalist profiteers and their state collaborators.”

For decades, Nigeria, Africa’s most populous nation, has been faced with intractable energy challenges, no thanks to an epileptic power supply which significantly affects productivity levels. Despite the privatisation of the electricity sector, power generation, transmission and distribution have remained bogged with hydra-headed monsters of policy inconsistency, low investments and operational challenges.

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In 2024, NERC approved the upward review of electricity prices with a unit of power costing about N250 for Band A customers.

The cost of petrol and diesel which are readily available alternatives have equally increased by fivefold, compounding the dilemma of consumers. In the same year, NERC granted at least some State’s Electrify Regulatory Commissions licenses to power plants and power distribution.

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Uba Sani Disburses N375m Loan To 10 Communities

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13 hours ago

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March 2, 2025

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By Abubakar Yunusa
Uba Sani, Kaduna state governor, says 10 communities received $25,000 cheques each from the community revolving fund to support farmer groups.

According to a statement by the state government, the cheques presented on Saturday amount to a total of N375 million.

Sani explained that the World Bank-assisted Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project provided the fund to help beneficiaries invest in climate-smart rain-fed agriculture.

The benefitting communities include Anchau, Kuzuntu, Kubau, Zuntu, Jenau, Likoro, Jaja, Hunkuyi, Kudan, and Danmahawayi.

Sani said the fund aligns with his administration’s commitment to rural transformation, which is designed to support registered farmer groups under the umbrella of community interest groups (CIGs).

“Kaduna state is proud to be at the forefront of initiatives aimed at combating climate change and ensuring sustainable livelihoods for our people,” he said.

‘’Over the years, we have implemented a range of strategic policies and programs designed to enhance ecological conservation, mitigate the impact of climate change, and promote economic resilience among our citizens.

‘’With the support of ACReSAL, the State Government unveiled a 10-year Climate Change Policy, trained 500 women, youth, and school-feeding vendors in the production of biomass briquettes as an alternative to wood fuel.”

Also, Sani said his administration disbursed loans in Kudan and Kubau local governments under phase one of the initiative, covering a total of 82 CIGs.

He further explained that phase two would commence in the second quarter of the year, including four local governments in the central and southern senatorial zones, alongside two area councils in the northern senatorial zone.

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According to the governor, the concluding phase of the implementation will cater to the remaining 11 local government areas in the state.

Joy Agene, the task team lead of the ACReSAL project, praised the government for its commitment to environmental sustainability, saying that the state remains one of the best-performing sub-nationals in the country.

Balarabe Lawal, minister of environment, also spoke at the event, stressing that the community revolving fund is a loan, not a grant, and must function as an investment fund for community and farmer groups.

‘’The loan is intended for communities, facilitating circulation among farmers and sustained through groups that ensure the loan remains active within your community via timely repayment, thereby enabling other farmers to reap the benefits,’’ he said.

“The ACReSAL project constitutes a significant component of the Federal Government’s aim to rehabilitate one million hectares of degraded land, contributing to the overarching goal of restoring four million hectares by the year 2030.

‘’The initiative will additionally contribute to diminishing the susceptibility of countless individuals living in extreme poverty in northern Nigeria, thereby enhancing their capacity to engage in the stewardship of their surroundings.”

At the event, Sani announced the procurement of the amphibious excavator, otherwise known as a swamp buggy, to prevent and control erosion, deepen waterways, and maintain and clean rivers.

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Afreximbank unveils new documentary series on Africa’s growth

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2 days ago

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March 1, 2025

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The African Export-Import Bank (Afreximbank) has announced the launch of its new documentary series titled “Impact Stories.”

A statement issued on Friday in Abuja by Vincent Musumba, Afreximbank’s Communications and Events Manager, stated that the documentary aimed to showcase the bank’s developmental impact across various sectors and countries in Africa.

It also highlighted the bank’s influence in the diaspora.

Musumba said Season One of the series, which consisted of six episodes, filmed across six countries and sectors, went on air on Afreximbank TV (www.youtube.com/@afreximbanktv) on Feb. 27, 2025.

He said the series produced by the Afreximbank TV team and CNN’s Created Studio services, sought to spotlight the bank’s interventions, incorporating multi-faceted narratives that brought the bank’s initiatives to life.

“Through testimonials of individuals, businesses, communities and economies that have been positively impacted by the interventions, the series creates an emotional connection.

“It also creates a shared commitment of an African vision focused on transforming trade and economic self-determination.”

Musumba said the inaugural season, consisting of six episodes, showcased some of Afreximbank’s development impact through inspiring short documentary-style films.

He said the episodes featured the Zimborders Beitbridge project which involved the expansion, upgrade and improvement of Beitbridge Border Post in Zimbabwe.

“This explores the transformative effect of Afreximbank’s investment in modernising the border post, and showing how improved infrastructure is addressing trade inefficiencies, fostering intra-African trade and driving regional growth.”

He said other episodes include the Glo-Djigbé Industrial Zone (GDIZ) in Benin, a project led by Afreximbank investee company, Arise Integrated Industrial Platform (Arise IIP).

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“This project is focused on driving industrialisation, job creation and end-to-end production on the continent.”

Another episode was on Oando PLC, which showcased the organisation’s successful acquisition in a key Nigerian oil sector joint venture and its transformative impact on local content and economic prosperity.

“Other episodes are Eva’s Coffee in Kenya, an SME business driving export development and local value chain expansion; Reine Ablaa, a rising music star and alumni of Afreximbank’s CANEX Music factory initiative.”

Musumba said an episode was on the ongoing success of the bank’s Pan African Payments and Settlement System (PAPSS).

He quoted Mrs Anne Ezeh, Director of Communications and Events at Afreximbank as saying: “Afreximbank was founded to drive Africa’s economic independence through trade and trade-enabling infrastructure.

“For the past 32 years, we have consistently translated that mandate into impactful projects and initiatives across the continent.

“The Impact Stories series represents an avenue to showcase the tangible progress we are making to transform the economic fortunes of the African people while reminding us of the development challenges that remain.”

Ezeh stated that compelling impact storytelling, when combined with data, evidence, and personal stories, made these elements potent tools for advocating positive change and motivating others to champion a cause.

She said new episodes would be released weekly. (NAN)

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