VOICE OF THE PEOPLE

Tag: CBN

  • CBN Investigator Fires Titan Trust, Union Banks Investors, Threatens FG Takeover

    CBN Investigator Fires Titan Trust, Union Banks Investors, Threatens FG Takeover

    The Special Investigator probing the activities of the Central Bank of Nigeria (CBN) and Other Related Entities, Jim Obazee, has rejected an excuse by the Chairman of Titan Trust Bank Limited, Tunde Lemo, and two others not to appear for interrogation.

    The other invitees are the two largest ultimate investors in Titan Trust Bank Limited and Union Bank Plc, Cornelius Vink and Rahul Savara.

    Recall that Obazee had given the trio today’s deadline to explain how they owned Titan Trust Bank and sourced $ 500 million to acquire the Union Bank.

    But barely 24 hours to their appearance before the Special Investigator in Abuja, they wrote through their lawyer that they would not be able to honour the invitation due to family reasons.

    In a letter on Wednesday, Titan Trust Bank and Union Bank Plc (UBN), through their counsel, Gbolahan Elias, asked the Special Investigator to give his clients more time.

    Reacting in a letter to the investors, Obazee accused Lemo and the two major investors of alleged obstruction of his assignment.

    He threatened to recommend to the CBN to ask the Federal Government to take over the two banks.

  • CBN Assures Nigerians Their Funds Are Safe in Banks

    CBN Assures Nigerians Their Funds Are Safe in Banks

    The Central Bank of Nigeria, CBN has affirmed the safety of funds in Nigerian banks and emphasising the stability of the country’s banking sector.

    The apex bank therefore advised the public to continue with their regular banking activities without succumbing to the alarm caused by unverified reports not originating from the CBN concerning the health status of Nigerian banks.

    The CBN stated that it is fully equipped to carry out its statutory duty of upholding a stable financial system in Nigeria.

    In a statement issued by the CBN acting Director, Corporate Communications, Hakama Sidi-Ali, today, the apex bank said the CBN has noticed reports, in certain media outlets, about a recommendation for the Federal Government to take over some CBN-supervised financial institutions.

    It noted that for the avoidance of doubt, Nigerian banks remain safe and sound.

    The CBN further encouraged the public to continue their regular activities without being alarmed by reports that have not emanated from the CBN about the health status of Nigerian banks.

    It assured the general public and depositors about the safety of their funds in Nigerian financial institutions.

    The clarification comes after the report by the CBN’s special investigator, Jim Obazee, that the embattled former governor of the apex Bank, Godwin Emefiele, used proxies, to set up two financial institutions.

    The report fuelled speculations that the CBN may take over Titan Trust Bank (former Union Bank) and Keystone Bank.

    Obazee, appointed special investigator in July 2023, submitted his final report to the Presidency on December 20, 2023.

  • Emefiele’s Probe Widens as CBN Investigator Grill Others

    Emefiele’s Probe Widens as CBN Investigator Grill Others

    The President Bola Ahmed Tinubu appointed Special Central Bank of Nigeria (CBN) Investigator, Jim Obazee, has summoned the Chairman of Titan Trust Bank, Babatunde Lemo, to answer questions relating to the controversial acquisition of Union Bank of Nigeria Plc by TTB.

    VOP News gathered that the TTB chairman, a former deputy governor of the CBN, was directed to report at the Department of Force Intelligence, Abuja and is expected to be questioned over the UBN acquisition.

    Lemo was further instructed to come along with the promoters of TTB, to meet with the team of special Investigators.

    According to The PUNCH, Lemo was invited in a letter dated December 24, 2023, and signed by the Head of Operations, Office of the Special Investigator, DCP Eloho Okpoziakpo.

    The Investigator had in his report alleged that some persons were used as proxies by a former CBN Governor, Godwin Emefiele, to set up Titan Trust Bank and acquire Union Bank.

    Obazee, who was appointed special investigator in July, 2023, submitted his final report to the Presidency on December 20, 2023.

    You will recall that in two reports on the acquisition of UBN and Keystone Bank submitted to President Bola Tinubu last Wednesday, Obazee alleged that Emefiele used proxies to acquire Keystone Bank without evidence of payment.

    Defending the purchase of Union Bank in an interview with newsmen, Lemo said the acquisition of the bank followed due process and met all regulatory requirements, including that of the Securities and Exchange Commission and the Central Bank of Nigeria.

    He insisted that the establishment of Titan Trust Bank and the subsequent acquisition of Union Bank were transparent and duly verified by the relevant regulatory bodies.

  • CBN Says Banks Now Responsible for Loans Recovery, Suspends Applications

    CBN Says Banks Now Responsible for Loans Recovery, Suspends Applications

    The Central Bank of Nigeria, CBN, suspending applications for new loans under its development finance intervention funds.

    Also, banks are now responsible for recovering those already granted.

    The apex bank announced this decision in a circular to the Chief Executive of banks, signed by Acting Director, Development Finance Department, Sa’ad Hamidu.

    Among other things, the CBN said it had commenced pullback from direct development financing interventions.

    The CBN added that the banks are now responsible for the recovery of loans granted so far under the development finance intervention funds.

    The apex bank also noted that the interest rates, as well as other terms and conditions on all existing facilities, remain as contained in their respective approval letters.

    It also noted that banks shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through their channels.

     

  • CBN Raises Alarm Over Increased Circulation of Fake Naira Notes, Tells

    CBN Raises Alarm Over Increased Circulation of Fake Naira Notes, Tells

    The Central Bank of Nigeria (CBN) is urging Nigerians to embrace alternative means of payment for their daily transactions as it raises alarm over the increased circulation of fake naira notes.

    In a statement on Friday, the spokesperson of the apex bank, Sidi Ali Hakama, detailed that counterfeit banknotes, especially the higher denominations, are currently circulating in food markets and other commercial centers across the country.

    The apex bank urged deposit money banks and other financial institutions to be more vigilant and take the necessary measures to curtail the circulation of these fake bank notes.

  • CBN Bars Customers Without BVN, NIN From April 2024

    CBN Bars Customers Without BVN, NIN From April 2024

    The Central Bank of Nigeria, CBN on Friday directed commercial banks to bar customers without Bank Verification Numbers and National Identity Numbers from having access to their accounts from March 2024 by putting a “post no debit” restriction on such accounts.

    The CBN directive was contained in a circular issued to all Deposit Money Banks on Friday.

    The circular was jointly signed by the Director, Payments System Management Department, Chibuzo Efobi, and Director, Financial Policy and Regulation Department, Haruna Mustapha.

    The apex bank said the directive was part of efforts to promote financial system stability and strengthen the ‘Know Your Customer’ procedures in all financial institutions.

    However, bankers said that the directive would likely lead to a rush by desperate customers to regularise their accounts in the coming weeks and months, adding that this would put pressure on employees to register the customers for the BVN, while the National Identity Management Commission offices and centres would face a similar situation for the NIN registration.

    A senior official of a Tier-1 bank in Lagos told one of our correspondents that the directive would sanitise the industry although it would exert considerable pressure on the banks.

  • CBN Directs Its Branches to Issue, Accept Old, Redesigned Naira Notes

    CBN Directs Its Branches to Issue, Accept Old, Redesigned Naira Notes

    The Central Bank of Nigeria, CBN, has directed its branches nationwide to continue issuing and accepting all denominations of the old and new naira notes to and from Deposit Money Banks, DMBs.

    This directive follows the Supreme Court’s acceptance of the prayer of the Minister of Justice and Attorney General of the Federation, AGF, to extend the use of old Naira banknotes till infinity.

    You will recall that in March the Supreme Court ordered that the old N200, N500 and N1,000 remain legal tender till December 31st, 2023 following the redesign of these denominations.

    At the backdrop of the approach of this deadline, many commercial and individual transactions began to witness cash scarcity despite assurances from the CBN that it would continue to accept all denominations of the notes both old and redesigned beyond the deadline.

    Subsequently, the AGF approached the Supreme Court to obtain a legal backing for this position of the CBN.

    In a statement signed by its Acting Director  Corporate Communications, Mrs. Sidi Ali Akama, CBN directed all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBS).

    Furthermore, the apex bank advised the general public to embrace alternative modes of payment, like e-channels, in order to reduce pressure on the use of physical cash.

     

  • CBN Delays Rates Decision for Second Time

    CBN Delays Rates Decision for Second Time

    Nigeria’s central bank postponed a meeting of its monetary policy committee for a second time since Governor Olayemi Cardoso was nominated to the post in September.

    A calendar of MPC meetings published on the central bank’s website had scheduled the next gathering for Monday and Tuesday.

    Isa Abdulmumin, the spokesman for the bank, said the “MPC is not holding” a meeting this week but didn’t give a date for when the next meeting will be held.

    Investors have been looking to the MPC meeting for signals on how the central bank will rein inflation that’s accelerating at the fastest pace in almost two decades.

    They’re also anticipating an update on the overhaul of the nation’s foreign exchange controls initiated by President Bola Tinubu in June.

    A Bloomberg survey of 12 economists had forecast the central bank will raise its benchmark rate by as much as 325 basis points from 18.75%