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Economy

Reps Summon Emefiele, Order CBN to Rescind Policy on Cash Withdrawal

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By Ubong Ukpong

The House of Representative s directed the Central Bank of Nigeria (CBN) to rescind it’s recent policy on cash withdrawals. House also summoned the CBN Governor, Godwin Emefiele to appear before it on Thursday next week, over the controversial policy.

This was sequel to a motion on matter of urgent public importance,raised by a member from Jigawa State, Rep Magaji Aliyu on the urgent need for the Central Bank Governor to rescind the recent cash withdrawal limit policy.

The lawmaker observed that small business owners based mainly in the rural areas were the major drivers of the nation’s economy.

He said these people would be seriously affected by the new CBN directives.

“The House: Notes that on the 6th day of December 2022, via a letter marked BSD/DIR/PUB/LAB/015/069, signed by one Haruna B. Mustafa (the Director of Banking Operations) issued the following releases to the public, among which are:

“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000.00 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10% respectively.Third party cheques above N50,000.00 shall not be eligible for payment over the counter, while extant limits of N10,000,000.00 on clearing cheques still subsist.The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000.00 subject to a maximum of N20,000 cash withdrawal per day.Only denominations of N200.00 and below shall be loaded into the ATMs.The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000.00 daily.In Compelling  circumstances, not exceeding once a month, where cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.

“Aware that majority of the small business owners in Nigeria are the major drivers of the Nigeria’s economy, and who are majorly residents of rural area and carried on their business, trade and activities in the said rural business areas.

“Further aware that the majority of these small business owners transacts their businesses, trade and transactions in physical cash and are in most cases not inclined to the use of electronic banking system as most of them are either illiterate, half educated or not learned  at all.

“Disturbed that these set of Nigerians who are the drivers of Nigeria Economy will be seriously negatively affected and their business and source of livelihood may be seriously impaired with these new directives of Central bank of Nigeria.

“Also disturbed that this directive of Central Bank, has been generating serious uproar and given low business owners serious concern since the said released as a result of the impact it may have given short time notice giving by Central Bank of Nigeria (CBN).

“Acknowledged that the Central Bank of Nigeria has the right to issue monetary policies on the Nigeria Economy to be able to guide and direct the Economy to the right part of recovery and growth.”

He was concerned however, that the new policies rolled out by Central Bank of Nigeria (CBN) will definitely have a negative impact on the already dwindling Economy, and further weakens the value of Nigeria as Nigerians may resolve to using dollars and other Currencies as a means of trading and thus further de valued Naira and weakens the Economy.

Consequently, the motion was overwhelmingly supported by members, leading to its adoption by the House.

Contributing to the debate, a member from Kano State, Rep. Aminu Sulaiman, noted that most rural areas across the country have no banking services and have to travel to other areas to access these services.

He also faulted the limited time given to Nigerians to understand the policy and the failure of the apex bank to sensitize the people adequately.

The Minority Leader of the House, Rep. Ndudi Elumelu however, is of the view that a cashless policy would be of great benefit to Nigerians as it would curtail banditry, criminal activities as well as corruption in the country.

Ruling on the motion, the Speaker, Rep Femi Gbajabiamila, directed the CBN to rescind the policy and also summoned the Governor to appear before the House.

Economy

Value Addition is new Standard in Mining Operations – Alake

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The Minister of Solid Minerals Development, Dr Dele Alake has declared value addition as the new indispensable standard for mining operations in the country.

Alake made the declaration in a statement issued by his Special Assistant on Media, Mr Segun Tomori, on Tuesday in Abuja.

The minister had earlier said that the federal government had resolved to ensure compliance to value addition before permitting investors to operate.

He said that his seven-point agenda for the ministry had placed the mining sector on the global front burner since assuming office, which had generated renewed interest from the international community in Nigeria`s mineral resources.

According to the statement, the minister lauded a mining company, African Natural Resources and Mines Ltd.

(ANRML), during an inspection tour in Kaduna State, for its 600 million dollar facility dedicated to the mining and processing of magnetite iron-ore.

He described the move as in line with the government`s resolve for value addition, which is especially apt given President Bola Tinubu`s quest to develop the solid minerals, to boost Nigeria`s economic profile and to meet the global upsurge in energy transition.

“The company aligns with our vision of value addition and beneficiation through its processing of iron-ore, and I urge other mining companies to take a cue from them, “ he said.

He reiterated the government`s commitment to abstain from granting mining licenses to companies that lack the necessary plans for value addition.

The minister acknowledged that resilience, courage and laying a solid foundation were critical in contributing to the company success.

He added that such factors also serve as guidelines for President Tinubu`s administration in its efforts for economic transformation.

“ We have set our minds in this administration and invariably in Nigeria to achieve success, that is why Mr President is restructuring the economy.

“When this company (ANRML) started seven years ago, we saw one of the foundations through the video documentary, the amount of concrete that went in to erect a foundation, just to carry a giant edifice.

“That is what we are going through. When we get through the gestation period, the results will manifest, and it will herald prosperity, “he said.

The minister had stated that no license would be granted to companies wishing to enter the mineral sector without presenting a plan for value addition, such as processing and refining which has multiplier effect on the economy. (NAN)

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Economy

Life Insurance Records 95% Net Claims in Q4 2023-NAICOM

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The National Insurance Commission (NAICOM) says Life insurance business recorded about 95 per cent net claims of the total claims in the fourth quarter of 2023.

A report by NAICOM in Abuja on Tuesday hinted that the record was due to the direct reflection of the ongoing regulatory measures by the Commission regarding claims settlements.

NAICOM said the insurance market average stood at about 71.

4 per cent of the N536.
5 billion gross claims reported at the close of the fourth quarter.

The Commission said the market also recorded retention of about 87.7 per cent for the life business, 54 per cent for non-life while the aggregate market average retention stood at 66.

7 per cent for the period.

It showed that the insurance industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter.

According to NAICOM, the insurance market recorded a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.

”Major growth drivers in the non-life segment of the market were oil and gas and fire Insurances contributing 27.3 per cent and 24.1 per cent respectively.

”In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding premium continues to decline.

”The premium posted 1.6 per cent as outstanding of all the premiums generated in the market during the period.

”Statistics also shows that the market recorded total assets of about N2.67trillion and capitalisation of N851billion in 2023,” NAICOM said. (NAN)

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Economy

No Mining License without Mineral Value Addition Plans-Alake Warns

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The Minister of Solid Minerals Development, Dr Dele Alake has warned that no mining license would be issued to prospective investors without requisite plans for value addition on minerals.

Alake gave the warning in a statement  by his Special Assistant on Media, Segun Tomori on Tuesday.

He said the Federal Government had resolved to ensure compliance before permitting investors to operate.

He said that his Seven -Point Agenda for the ministry had placed the mining sector on global front burner since assuming office, which had generated renewed interest from the international community in Nigeria’s mineral resources.

He said the support of the executive and the legislature had enabled the ministry to showcase the solid minerals sector globally, resulting in his election as the Chairman of the Africa Minerals Strategy Group (AMSG) at the Future Minerals Forum in Riyadh, Saudi Arabia.

According to him, with the pact that led to the formation of the AMSG, there is now unity of purpose on the African continent regarding the issue of local value addition.

“We are no longer going to allow anybody or license any company that wants to go into the mineral sector without giving us a plan for local value addition,  like processing, refining and this has a multiplier effect on the economy.

“It instantly generates employment rather than a few people carting away lithium, gold, and the likes to other countries to sell.

“These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced, ” he said.

Reports says that the minister had earlier received members of the House Committee on Solid Minerals who were on oversight visit to his office.

The minister commended the lawmakers for their support in repositioning the mining sector, stressing that boosting the economic profile of Nigeria required joint task by both the executive and legislature.

He acknowledged the significant contribution of sub-nationals to mining development, emphasising that state chairmen of  Mineral Resources and Environmental Management Committee (MIREMCO) and five committee members were nominated by state governments. (NAN)

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