The National Leader of the All Progressives Congress, APC Asiwaju Bola Ahmed Tinubu , and the Awujale of Ijebuland, Oba Sikiru Adetona Ogbagba II were guests of President Muhammadu Buhari in London on Thursday.
Thursday, 16 June 2016
Good afternoon ladies and gentlemen and welcome to the Central Bank of Nigeria (CBN). The Management of the Bank has called this Press Conference in response to one of the commitments contained in the Communiqué of the Monetary Policy Committee (MPC) of 24th May 2016.
Having consulted widely and prepared carefully, the committee of Governors of the CBN is delighted to unveil to relevant stakeholders and the general public, the broad framework and guidelines of the Flexible Exchange Rate Inter-bank Market, which we alluded to at the end of that MPC Meeting. Before I proceed into the details of this new policy, please permit me to provide you with a brief context.
2. We all know by now that Nigeria has been dealing with the effects of three significant and simultaneous global shocks, which began around the third quarter of 2014. These include:
· The over 70 percent drop in the price of crude oil, which contributes the largest share of our Foreign Exchange Reserves;
Global growth slowdown and geopolitical tensions along critical trading routes in the world; and
· Normalization of Monetary Policy by the United States’ Federal Reserve.
3. In view of these headwinds, the CBN witnessed a significant decline in our Foreign Exchange Reserves from about US$42.8 billion in January 2014 to about US$26.7 billion as of 10th June 2016. In terms of inflows, the Bank’s foreign exchange earnings have fallen from about US$3.2 billion monthly to current levels of below a billion dollars per month.
4. Despite these outcomes, the demand for foreign exchange has risen significantly. For example, in 2005 when we had oil prices at about US$50 per barrel for an extended period of time, our average import bill was N148.3 billion per month. In stark contrast, our average import bill for 2015 was about N917.6 billion per month. Unfortunately, the interplay between reduced FX Supply and rising FX demand accounted for a substantial reduction in our foreign exchange reserves.
5. In order to avoid further depletion of the reserves, the CBN took a number of countervailing policy actions, anchored on the prioritization of the most critical needs for foreign exchange as well as maintaining stability in the exchange rate. Having allowed two adjustments from August 2014 to February 2015, we decided to manage the Naira-Dollar Exchange Rate at about N197/US$1 over the last 16 months, and then provide the available but highly limited foreign exchange to meet the following needs:
· Matured Letters of Credit from Commercial Banks
· Importation of Raw Materials, Plants, and Equipment,
· Importation of Petroleum Products, and
· Payments for School Fees, BTA, PTA, and related expenses
6. Over the intervening period, we are happy to note that these policies have yielded some positive developments. In particular, we have managed to stabilize the exchange rate since February 2015, thereby creating certainty for both household and business decisions, and also underpinning the economic growth we recorded in 2015. We have largely eliminated speculators and rent-seekers from the Foreign Exchange Market. Our Reserves, despite having fallen, is still robust and is able to cover about 5 months of Nigeria’s imports as against the international benchmark of 3 months. Furthermore, the domestic production of items restricted from the FX market is picking up nationwide, thereby creating more jobs for many more Nigerians.
7. Despite these positive outcomes, the Central Bank of Nigeria has always maintained that it would continue to monitor situations on the ground and ensure that the Bank’s policies reflect these facts and developments rather than the sentiments of any groups or sectors. It is in light of this principle that we now believe that the time is right to restore the automatic adjustment mechanism of the exchange rate with the re-introduction of a flexible inter-bank exchange rate market. The workings of this market will be consistent with the Bank’s objectives of enhancing efficiency and facilitating a liquid and transparent Foreign Exchange Market.
8. Although the detailed framework and operational guidelines of the market will be released to the public immediately after this Press Briefing, permit me to highlight its key aspects:
a. The market shall operate as a single market structure through the inter-bank/autonomous window;
b. The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book;
c. The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises;
d. To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis;
e. These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released immediately after this Press Briefing;
f. There shall be no predetermined spread on FX spot transactions executed through the CBN intervention with Primary Dealers, while all FX Spot purchased by Authorized Dealers are transferable in the inter-bank FX Market;
g. The Forty-One (41) items classified as “Not Valid for Foreign Exchange” as detailed in a previous CBN Circular shall remain inadmissible in the Nigerian FX market;
h. To enhance liquidity in the market, the CBN may also offer long-tenored FX Forwards of 6 to 12 months or any tenor to Authorized Dealers;
i. Sale of FX Forwards by Authorized Dealers to end-users must be trade-backed, with no predetermined spreads;
j. The CBN shall introduce non-deliverable over-the-counter (OTC) Naira-settled Futures, with daily rates on the CBN-approved FMDQ Trading and Reporting System. This is an entirely new product in the Nigerian Foreign Exchange Market, which would help moderate volatility in the exchange rate by moving non-urgent FX demand from the Spot to the Futures market;
k. The OTC FX Futures shall be in non-standardized amounts and different fixed tenors, which may be sold on any dates thereby ensuring bespoke maturity dates;
l. Proceeds of Foreign Investment Inflows and International Money Transfers shall be purchased by Authorized Dealers at the Daily Inter-Bank Rate; and
m. Non-oil exporters are now allowed unfettered access to their FX proceeds, which shall be sold in the Inter-bank market.
9. In terms of timelines, the Management of the Central Bank has agreed as follows:
a. The detailed operational guidelines for the Flexible Foreign Exchange Market will be released immediately after this Press Briefing;
b. The guidelines for the selection and operations of FX Primary Dealers would also be released immediately after this Press Briefing;
c. Selected FX Primary Dealers would be notified by Friday 17th June 2016. All other non-Primary Dealers would remain valid and eligible to participate in the market;
d. Inter-bank trading under the new guidelines will begin on Monday 20th June 2016; and
e. The tenors and rates for the OTC Naira-settled FX Futures will be announced on Monday 27th June 2016.
10. In closing, let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. The CBN expects all authorized dealers particularly to display the highest level of professionalism. We expect them to understand the spirit and letter of this transition to a market based system. The CBN will not allow the system to be undermined by speculators and rent-seekers. Permit me to emphasize that any attempt to breach any aspect of this new framework will be heavily sanctioned by the CBN and this may indeed result in the suspension or withdrawal of the FX dealing license of an offending Authorized dealer.
11. I therefore urge market participants to assist us in ensuring that this new system enables the CBN to pursue its mandate in a more effective and efficient manner, which guarantees preservation of our scarce commonwealth, stability of our financial system, and growth of our economy to the benefit of all Nigerians.
BRIEF REMARKS BY IGP SOLOMON E. ARASE, NPM, fdc, AT THE COMMISSIONING CEREMONY OF NIGERIA POLICE FORENSIC LABORATORY AND DIGITAL RESOURCE CENTRE AT THE FORCE CRIMINAL INTELLIGENCE AND INVESTIGATION DEPARTMENT, ABUJA ON WEDNESDAY, 15TH JUNE, 2016
Protocols
It is with a sense of elation and professional fulfilment that I welcome you all to this landmark ceremony marking the commissioning of the ultramodern Nigeria Police Forensic Laboratory and Digital Resource Centre.
2. My sense of elation stems from the fact that the integration of global best policing practices has been one of the core focus of my leadership. This is because forensic-guided police operation represents a critical component of modern policing functions. Biometric support to policing is not only a source of police intelligence, it is also a vital aid to successful investigation and prosecution of criminal elements.
3. Unfortunately, the Nigeria Police Force has over the years, been grappling with weak forensic capacity which has been a major factor in our inability to manage complex criminal situations. Today’s event is designed to bridge this capacity gap in the Force in relation to forensic assets of the Force.
4. The asset being commissioned today is a traditional scientific investigation tool of police departments all over the world. It is also a Personal Identity Management System that the Nigeria Police Force ought to have had long before now.
5. The facility has a wide variety of applications for the positive identification of suspects through their fingerprints, iris and facial recognition functions. It is designed to collect, store, merge and display the identity of the targeted criminal element even at the scene of crime. The system can also convert existing manual record of arrested suspects into digital and searchable format.
6. With this system, the Nigeria Police is not only set to comply with the provisions of the Administration of Criminal justice ACT 2015 to capture and remit to the Office of the Attorney General of the Federation all biometrics of suspected persons arrested by the Police but also put the Police in a position to key into the Presidential directives that all data capturing Government Agencies should harmonize and integrate Personal Identities captured by such agencies on or before the end of 2016.
7. Furthermore, the facility has been set up to complement the existing Forensic Laboratory in Lagos. In addition, the Digital Resource Centre was designed to serve as an information processing centre where outcomes of analysed pieces of forensic evidence or other specialised policing materials or criminal information are disseminated in the most secure fashion to other Police Formation. It has the capacity for accessing over five (5) million Law Enforcement Research materials such as journals, reports, Force orders, annual reports, forensic books and publications by renowned Police authors and experts around the world over.
8. From the Digital Resource Centre, officers can conduct research from any facet of policing through the FCIID robust data portal also connected to the INTERPOL Global Learning Centre, Singapore. Other features include full display of digital maps as well as crime scene investigation, and forensic videos. Furthermore, the centre will serve as a central Unit for training, presentation and strategic meetings for the various sections of the FCIID.
9. Ladies and gentlemen, the dream of acquiring this forensic asset for the Force would have remained a mere illusion, but for the steadfastness and strong commitment of DIG Christopher Katso, the Deputy Inspector General of Police in-charge of the Criminal Intelligence and Investigation Department and his Team.
10. Permit me, therefore to commend the Police team that coordinated the implementation of this Project. Looking back, they can be proud that through their sense of commitment to duty, they have aided my leadership in bequeathing to our dear nation a new Police Force that citizens have been desiring for decades. I am indeed proud and appreciative of you.
11. To my fellow professional colleagues who will utilise the facility being commissioned today, let me remind you that modern policing is no longer by power, might or extra-judicial means. It is driven by application of technology, forensic science, intelligence and above all, citizen’s consent. The Force leadership has by this commissioning exercise, equipped you with a vital tool to guide your operations, investigations and prosecutorial engagements. You now have no excuse to operate in unprofessional manner. You, rather, now have the means to align your operations to the rule of law, citizens’ professional expectations, and best international practices. I trust that you shall up your policing game, accordingly.
12. I thank you all for your attendance and pray for God’s Divine Protection over our beloved nation.
The Commissioning Ceremony of Nigeria Police Forensic Laboratory and Digital Resource Centre took place on Wednesday, 15th June, 2016 at the Force Criminal Investigation and Intelligence Department, FCID, Abuja.
The Inspector-General of Police IGP Solomon E. Arase fdc, NPM, while commissioning the facility said that it would help the Nigeria Police Force to comply with provisions of the administration of Criminal Justice Act 2015 to capture and remit to the office of the Attorney General of the Federation all biometrics of suspected persons arrested by the police.
The police chief said that biometrics would support policing not only as a source of intelligence, but also a vital aid to successful investigation and prosecution of criminal elements.
He explained that over the years police have been grappling with weak forensic capacity which has been a major hindrance in managing complex criminal situations.
”The Force is equipped with vital tool to guide its operations, investigations and prosecutorial engagement.
"Also the facilities have a wide variety of applications for positive identification of suspects through their finger prints, iris and facial recognition functions,” he said.
The United States Ambassador to Nigeria, Mr. James Entwistle has forwarded a petition to the Speaker of the House of Representatives, Hon Yakubu Dogara, alleging that some members of the lower chambers attempted to commit rape and encourage prostitution during an official trip to the United States.
The accused lawmakers have however, vehemently denied the allegations and further threatened legal action against the United States Ambassador for “character defamation and a calculated attempt to ridicule the National Assembly.”
In a petition addressed to the Speaker of the House of Representatives and dated June 9, 2016 by the US Ambassador, three members of the lower chambers including Hon. Mohammed Garba Gololo (APC, Bauchi), Hon. Samuel Ikon (PDP, Akwa Ibom) and Hon. Mark Gbillah (APC, Benue) were accused to have brought disrepute to the parliament by soliciting for sex from prostitutes and grabbing a hotel housekeeper in a bid to rape while on a visit to the United states for the International Visitor Leadership Program.
Mr Entwistle's letter was obtained by independent news source, New Telegraph and reads:
“It is with regret that I must bring to your attention the following situation. Ten members of the Nigerian National Assembly recently travelled to Cleveland, Ohio as participants in the International Visitor Leadership Programme on good governance. We received troubling allegations regarding the behaviour of three members of the delegation to the U.S. Government’s flagship professional exchange programme.
“The U.S. Department of State and the Cleveland Council on World Affairs received reports from employees of the Cleveland hotel where the representatives stayed, alleging the representatives engaged in the following behaviour:
“Mohammed Garba Gololo allegedly grabbed a housekeeper in his hotel room and solicited her for sex.
“While the housekeeper reported this to her management, this incident could have involved local law enforcement and resulted in legal consequences for Representative Gololo.
“Mark Terseer Gbillah and Samuel Ikon allegedly requested hotel parking attendants assist them to solicit prostitutes.
“The U.S. Mission took pains to confirm these allegations and the identities of the individuals with the employees of the hotel in Cleveland.
“The conduct described above left a very negative impression of Nigeria, casting a shadow on Nigeria’s National Assembly, the International Visitor Leadership Program, and to the American hosts’ impression of Nigeria as a whole.
“Such conduct could affect some participants’ ability to travel to the United States in the future.
“While the majority of Nigerian visitors to the United States do behave appropriately, even a few Nigerians demonstrating poor judgement leads to a poor impression of the Nigerian people generally, though it is far from accurate. Such incidents jeopardise the ability of future programming and make host institutions and organisations less likely to welcome similar visits in the future.
“In addition, most of the members of this group reacted very negatively to my deputy when she brought this matter to their attention, further calling into question their judgement and commitment to the goals of the International Visitor Leadership Programme.
“This leads us to question whether to include National Assembly members for other similar programmes in the future.
“I request, in the strongest possible terms, you share this message with members of the National Assembly so they understand the seriousness of these issues, and the potential consequences of their actions, not only for themselves as individuals, but also for the future of such programmes designed to benefit Nigeria.”
One of the accused legislators Gbillah replying to the accusation, said: “This is an affront on the National Assembly and Nigeria, it appears they have ulterior motives. We are not going to take this lightly; we will take legal actions against the US government. It is a dent on our image.
“I went on the trip with my wife and baby and insisted that she stayed with me, but they told me the accommodation was meant for only participants. So, at Cleveland Renaissance where we were, opposite the Quicken Loan Arena, the Cleveland Cavalier Basketball team played a match and many people came to lodge at the same hotel, and they claimed that we spoke with car park attendants. We didn’t go with cars, so how could we have spoken with attendants
“I saw the ambassador (Entwistle) and went to greet him and he told me how a few of us tarnished the image of the House. I advised him to make it formal so that we can know who was involved and what actually happened.
“It was after this encounter that they called us to their premises and said we were identified by their accusers in a group picture. This is curious. No video footage. They didn’t accost us while we were in US. We suspect this is a calculated attempt to rubbish the National Assembly.
“Is this how they would have investigated their congressmen? Do they know that there were other black people who came to watch the match? How could they have identified us in a picture without our knowledge?
“We, the concerned members, have written to the speaker indicating the facts and demanding footage of our stay in the hotel. We also want them to provide access to our accusers to identify us. But most importantly, we would be demanding compensation from the US government for defamation of character.”
Gololo who was accused of grabbing a housekeeper with intention of rape in a letter addressed to the Speaker dated June 13 said: “Let me, from the outset, express my shock and dismay at the contents of the letter generally and particularly affects me.
“These are totally false, unfounded and baseless allegations against me. I categorically deny any such incident happened, I never grabbed any housekeeper nor did I solicit for sex. I also take this issue very seriously not only because I am a honourable member representing a hallowed institution, but because of my integrity as a husband and father. How would my family and in-laws react to these wild and grave allegations?
“I demand an apology and retraction of these allegations or I shall not hesitate to engage the services of lawyers and not only to clear my name, but to seek redress for the damages done to my reputation. I insist that evidence of the allegations against me be produced….
“It is, therefore, in the interest of both countries to investigate this matter thoroughly to get to the root of it and I am ready to go back to Cleveland at my expense to establish my innocence without prejudice to my rights, press charges against libellous allegations”
While expressing shock at the allegation, a member of the House on the delegation told independent news source New Telegraph under the condition of anonymity:
“I cannot believe this. Something must be wrong somewhere. We were all in the same hotel and this same man (Gololo) was there as well. He has all the capacity to get a woman in the city if he wanted to, but he is somebody we all know loves his wife and family so much. The lady did not even mention names, we learnt she only pointed at the man in the group photograph we took during the programme.
“Again, this issue was reported two weeks after we left the hotel. Why was this not done while we were there? The lady in question did not shout immediately and one wonders if truly there was such thing.
“We did not know anything until the letter written to the Speaker went round all of us who were in Cleveland for the meeting. It is shocking.”
Th Federal Government has responded to the destruction of 80% of the nation's tomato farms by the tuta absoluta pest by declaring a state of emergency in the tomato production.
The development was announced on Wednesday by Minister of Industry, Trade and Investment , Hajia Aisha Abubakar who addressed newsmen after a meeting with major stakeholders in the tomatoes value chain.
Stakeholders at the meeting included packagers, relevant government ministries and regulatory agencies, farmers and processors.
The minster said that a technical committee would be inaugurated next week to draft the proposed policy.
“This meeting was convened in response to the current scarcity of tomatoes in the country occasioned by the outbreak of the tomato moth, tuta absoluta.
“Our investors in the sector have also been upset about the CBN’s ban on foreign exchange allocation for the importation of tomato concentrate, a vital raw material for them.
“So, we all came together to chart a way forward. The major decision we have taken is to develop a tomato policy under our National Industrial Revolution Programme (NIRP).
“A technical committee that would work on the policy draft should take-off next week so that we would have an approved plan in place before the next tomato season," she said.
Wednesday, 15 June 2016
The government of Kano State has secured a N2 billion Small and Medium Enterprises fund from the Central Bank of Nigeria, CBN.
Governor Abdullahi Ganduje has said that the money will soon be disbursed to artisans in the state through the 37 government-owned microfinance banks.
He stated that women would constitute 63 percent of beneficiaries of the fund, which is an interest free loan.
The governor explained that the decision to allocate larger percentage of the money to women is based on the desire to empower them economically and lift families out of poverty.
He made the assertion during the inauguration of the reconstituted boards of the microfinance banks.
According to the governor, the boards of the banks were reconstituted to give them a new lease on life.
“The banks were virtually dead when we came in and the money was stolen. The banks were disorganized. We have to reorganize them to enable them perform up to expectation," he said.
Ganduje disclosed that the state anti-corruption agency has been directed to focus its search light on the banks so that anyone found misappropriating funds would face the full wrath of the law.
He directed local government councils in the state to patronize the microfinance banks especially by depositing their revenue funds, adding that the state government would also help the banks to become vibrant by carrying out its empowerment programmes through them.
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