Connect with us

Banking

MTN Nigeria denies CBN claims on illegal repatriation of $8.1b

Published

on

MTN Nigeria denies CBN claims on illegal repatriation of $8.1b

 

Loan

By Chiazo Ogbolu

Lagos, Aug. 30, 2018

MTN Nigeria on Thursday refuted the claims by the Central Bank of Nigeria that it illegally, in collusion with four Nigerian banks repatriated $8.1billion from its Nigerian operations to offshore investors.

The CBN said the remittances between 2007 and 2015, in tranches of of 2.63 billion dollars, 1.766 billion dollars and 348 million dollars were done in flagrant violation of the rule that says it can only be done with regular ‘Certificates of Capital Importation (CCIs)’ issued by the apex bank.

The CBN said MTN did the repatriation after illegally converting shareholders’ loan of $399, 594,146 to preference shares.

As part of the sanctions, four banks, Stanbic IBTC Nigeria, Citibank Nigeria and Diamond Bank Plc, were fined by the CBN.

Standard Chartered Bank would pay a fine of N2.47 billion, Stanbic IBTC, N1.88 billion, Citibank Nigeria, N1.26 billion and Diamond bank, N250 million.

“MTN Nigeria received a letter on Aug 29 from Central Bank of Nigeria (CBN) alleging that Certificate of Capital Important (CCIs) issued in respect of the conversion of shareholders’ loans in MTN Nigeria to preference shares in 2007 had been improperly issued.

`As a consequence they claim that historic dividends repatriated by MTN Nigeria between 2007 and 2015 amounting to $8.1 billion need to be refunded to the CBN.

“MTN Nigeria strongly refutes these allegations and claims.

“No dividends have been declared or paid by MTN Nigeria other than pursuant to CCIs issued by our bankers and with the approval of the CBN as required by law,” he said.

Aina said that the issues surrounding the CCIs had already been the subject of a thorough enquiry by the Senate of Nigeria.

He added that in September 2016 the Senate mandated the Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation on compliance with the Foreign exchange (monitoring and miscellaneous) Act by MTN Nigeria & Others.

He said that in its report issued in November 2017, the findings evidenced that MTN Nigeria did not collude to contravene the foreign exchange laws and there were no negative recommendations made against MTN Nigeria.

“MTN Nigeria, as a law-abiding citizen of Nigeria, is committed to good governance and to abide by the extant laws of the Federal Republic of Nigeria.

“The re-emergence of these issues is regrettable as it damages investor confidence and, by extension, inhibits the growth and development of the Nigerian economy.

“We will engage with the relevant authorities and vigorously defend our position on this matter and provide further information when available.

CBN’s spokesperson, Isaac Okorafor, said the apex bank has written MTN Nigeria demanding a refund of the $8.13 billion, repatriated.

The Bank resolved to sanction the commercial banks following investigations in March 2018, which confirmed allegations of remittance of foreign exchange with irregular Certificates of Capital Importation (CCIs) issued on behalf of some offshore investors of MTN Nigeria.

Edited by Fela Fashoro

Banking

(Audio) CIBN scores Buhari administration high on banking regulation

Published

on

 

Continue Reading

Banking

DMO raises N66.9bn at July bond auction

Published

on

, The Debt Management Office (DMO), says  the Federal Government raised N66.9 billion at its bond auction on Wednesday, as part of moves to finance the 2018 budget.

The DMO  said on its website that the bonds were auctioned  in three tenors of five, seven and 10 years.

This, it said, was to give its diverse investor base an opportunity to choose their preferred tenors.

It said investors showed a strong preference for the 10-year bond with a total subscription of N50.51 billion compared to the N40 billion that was offered.

However, N46.39 billion was allotted.

“The Federal Government bonds at the auction were allotted at 13.69 per cent for the five year, 14 per cent for the seven year and 14.2 per cent for the 10-year bond.”

According to the auction results posted on the website, DMO  stated that out of the N25 billion  offered for the five year bond,  subscriptions to the value of N12.93 billion was received, while N8.93 billion was allotted.

It also said that for the seven year paper,  N13.58 billion subscriptions were received for the N25 billion on offer. However,  N11.58 billion was allotted.

Nigeria issues sovereign bonds monthly to support the local bond market, create a benchmark for corporate issuance and fund its budget deficit.

Continue Reading

Banking

FEC okays N15.7bn for Enugu-Anambra road project

Published

on

Projects

“The contract was awarded in 2012 and they were spurs off the Enugu-Onitsha Highway to six different communities, Ebenebe, Agba, Umana-Ndiagu, Nkpodu, Ekeagu and Ugwuoba.

“Because of lack of appropriate budgeting and funding all of these projects could not be completed.

“There were failures in the implementation as we inherited it; there was also the need to provide for erosion control measures and drains.

“That has led to the revision of the existing contract awarded in 2012 from N10.3 billion to 15.734billion.”

Fashola said that it was the revision to enable the contract to be completed that was presented and approved by the council.

edited by Sadiya Hamza

 

Continue Reading

Banking

Annan lived a great life, says Moghalu

Published

on

By Chioma Ugboma

Lagos Aug. 19, 2018 A former official of the United Nations (UN), Prof. Kingsley Moghalu on Saturday described the late Kofi Annan as a man who lived a great life.

Moghalu, a presidential aspirant of the Young Progressive Party (YPP) and former Deputy Governor of the Central Bank of Nigeria (CBN) made this declaration in his tribute to Annan.

The Nigeria News Agency reports that Annan, the 7th UN Secretary General between 1996 and 2007, died on Saturday at the age of 80.

The late Ghanaian diplomat, was a recipient of the prestigious Nobel Peace Prize and led the UN through some of its biggest reforms in order to build a stronger, more capable organization.

In a tribute sent to NAN in Lagos, Moghalu said: “In April I started my tribute to Kofi Annan on his 80th birthday with this quote: “To live is to choose. But to choose well, you must know who you are and what you stand for, where you want to go and why you want to go there.

“These are the powerful words from Mr Annan himself; words that have made an indelible mark on both my professional and personal lives.

“On a personal note, I have long admired his adventurous spirit, one that he encouraged in me and others, to seek divergent career paths that ultimately would make for a better employee, and a better organization.

“He himself had taken a circuitous route to his role as leader of the world’s most important body, and he left a strong mark. Long after Mr Annan left, he was spoken of fondly by staff who remembered not just his work, but his calm, intellectual personality that was a much-needed influence in the organization.

“In my tribute, I wrote that his was a “life of consequence”, not merely because he, like, Nelson Mandela, had achieved the feat of projecting a positive role model for black African excellence like few others had, but because he also sought to change the world—and did.

Continue Reading

Banking

4 commercial banks donate N980m to Police in 2017

Published

on

Contributions

By Chinyere Joel-Nwokeoma

Lagos, Sept. 3, 2018 Four commercial banks donated a total of N980 million to the Nigerian Police Force in 2017 to support its activities, with the banks incurring the wrath of their shareholders.

Checks by the Nigeria News Agency indicated that the banks were United Bank of Africa (UBA), Guaranty Trust Bank, FCMB Group and Fidelity Bank.

A breakdown of the figures contained in the commercial banks’ 2017 annual reports obtained by NAN showed that UBA gave the sum of N300 million during the review period.

Guaranty Trust Bank also donated N300 million, FCMB and Fidelity Bank contributed N180 million each.

Speaking on the contributions, Mr Moses Igbrude, Publicity Secretary, Independent Shareholders Association of Nigeria, said that the donations were not voluntary but imposed on banks in the name of improving security.

Igbrude said the donations should be voluntarily and not by force, noting that it was not the duty of the banks to fund the Police Force.

“While I have no problem with corporate bodies contributing or donating toward improving or assisting the NPF it should not be by force or seen as if it is the banks’ duty to fund the Police Force.

“Anything that increases expenses and reduces the value of an investment is not what shareholders will support,” he said.

Igbrude said the burden on banks was so much, and that they provide everything for themselves despite the taxes they paid to the government.

“A branch of a bank is like a local government, it provides water, light, security and other things necessary to run that branch.

“You want banks to create employment, to kick start the economy by providing funding yet they are burdened with various impediment like AMCON levies, among others.

“So what is the role of government in all these?” Igbrude asked.

He said the government and the regulators should allow the managements of banks to contribute to security through their individual corporate social responsibility initiatives rather than by compulsion.

Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, said there was nothing wrong with the donations provided it was channelled for specified purpose.

Okezie said banks should identify urgent needs of the police such as accommodation or provision portable boreholes.

He said the provision of basic amenities would be preferable instead of donating cash.

Okezie said shareholders should not be shortchanged, and that every fund was important when it had to do with return on investment.

Also speaking, Mazi Okechukwu Unegbu, former President, Institute of Bankers of Nigeria, said it was the responsibility of the government to provide security for its citizens and to make the business environment right for businesses to thrive.

He said the donations by banks were meant to secure banks facilities and the environment around the banks, noting that the support started a long time ago.

Unegbu said the question remained whether the police utilised the money for the purpose it was meant.

He said the banks were trying in terms of support but could not control the police or do more than contributing the money.

According to him, in other countries banks do not fund the Police because they have good security environment contributed by various police divisions unlike Nigeria where it is centralised.

He, however, called on banks to sponsor specific projects that would affect the lives of the police instead of donating funds.

Prof. Sheriffdeen Tella, Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, told NAN that banks, just like any organization, must engage in corporate social responsibility (CSR).

“Since the Police assist the banks in security matter, it is important that part of the CSR be spent on them as organisations not individuals.

“For example, purchase of vehicles for operations can be taken up under CSR, not building police station.

However, Mr Nnamdi Okonkwo, Fidelity Bank Managing Director, told the shareholders recently that it was an initiative of the Bankers’ Committee aimed at supporting the Nigerian Police.

Okonkwo said that the committee agreed to support the police by equipping them and as well as provide other things needed to make their jobs easier.

Edited by Salif Atojoko

Continue Reading

© 2019 NNN NEWS NIGERIA. All Rights Reserved.