3 bank directors resign from NESG in protest to CBN immunity letter

Nairametrics can authoritatively confirm that some members of the board of directors of the Nigerian Economic Summit Group (NESG) have voluntarily resigned from their position.

Their resignation appears to be related to the recent spat between the NESG and the CBN following a controversial press release that purportedly claimed Godwin Emefiele was seeking immunity. The report also attacked the recent macroeconomic policies approach of the CBN in ensuring economic stability.

READ: CBN reviews minimum interest rates on savings deposit to 1.25%

Back Story: Nairametrics earlier reported the CBN’s reaction to wide-ranging claims made against it by the NESG which suggested that section 51 of a proposed Banking and Other Financial Institution (BOFIA) Bill sought immunity for the CBN Governor, Godwin Emefiele.

The official press statement released by the CBN aimed at allaying some of the fears raised by the group which majorly bothered on its policy trust and issues such as its agricultural borrowing programme, immunity clause among others. The CBN, while admitting to taking extraordinary measures in order to stabilize the economy, fact-checked the issues raised by NESG.

READ: Forex crisis: Those patronizing parallel market will lose money – CBN Governor

However, the much-publicized and controversial attack on the apex bank did not go down well with some of the directors, who are upset that they were not carried along before the press release was issued. This is according to information provided to Nairametrics by a reliable source with knowledge of the resignations. Nairametrics reliable gathers that as a response of disapproval to the criticisms of the CBN, at least three bank directors namely – Kennedy Uzoka, the Group Managing Director of UBA Plc; Adesola Adeduntan, Managing Director of First Bank and Abubakar Suleiman, Managing Director of Sterling Bank Plc abruptly tendered their resignations on Wednesday.

We further gathered that the group’s last statement on Tuesday with the caption ‘Matters of Urgent Attention’, which did not have the approval of members of the Board, is what appears to have irritated most of the members and causing the disaffection amongst them. The Nigerian Economic Summit Group (NESG) is a non-profit, non-partisan private sector organization with a mandate to promote and champion the reform of the Nigerian economy into an open, private sector-led globally competitive economy.

Lagos State collaborate to address declining infrastructure in Festac Town
The State and Federal governments have resolved to address the degeneration of infrastructure in Festac Town.

Published 1 min ago on September 10, 2020 By Chike Olisah Lagos cancels 2018 land use charge, LAND USE CHARGE, Lekki sealed buildings, Lagos state governor issues new guidelines for lockdown, consider full reopening of its economy

The Federal Government and Lagos State Government have resolved to collaborate to address the degeneration of infrastructure in Festac Town, a federal housing estate situated in Amuwo-Odofin area of the State.

They had promised to address the challenge of excessive property development and lack of facility in the housing estate.

This resolution was the outcome of a meeting between the Lagos State Governor, Babajide Sanwo-Olu and the Managing Director of the Federal Housing Authority (FHA), Senator Gbenga Ashafa, on Wednesday.

This signals an end to the lingering disagreement between Lagos State and the Federal Government over the matter.

Ashafa, who led top officials of FHA including its Executive Director for Business Development, Hon. Abdulmumin Jibrin, on the courtesy visit to the governor, presented 4 partnership requests to the Lagos State Government, which include knowledge sharing and technology transfer, cooperation on infrastructure delivery, and quick resolution of development crisis in Festac Town.

Sanwo-Olu described the development crisis in Festac Town as unpleasant, pointing out that the population growth and influx of people led to the degeneration of the neighbourhood. He also said the failure of oversight on activities of property developers in Festac Town distorted the original master plan of the area.

He said, “Festac Town as it is today is not what it looked like from the 1970s to 1990s, given the degeneration of infrastructure and the unpleasant development observed in the community. The original master plan did not consider population growth, which reflected in the calibre of allottees that got the property then. As a result of the lack of monitoring and enforcement, people took advantage of this weakness to build indiscriminately on every available space.

“I think we can still correct this irregularity and regenerate the entire area for healthy living and business, now that the Federal Housing Authority is headed by a highly knowledgeable indigene of Lagos. Once the Federal Government is ready, Lagos State will cooperate fully and work through our Ministry of Physical Planning and Urban Development on the agreed plan. We are ready to give a waiver on statutory issues that may aid the progress of this move. Lagos is not the owner of the estate but we have a sense of duty to prevent the depreciation of the asset on that corridor.”

The Governor also conceded to FHA’s request to collaborate in the area of technology transfer, pledging to work with the federal housing agency to raise its capability by creating an electronic solution that would further ease allocation of property, land administration and approval of survey plan.

Sanwo-Olu expressed his appreciation to President Muhammadu Buhari and Minister for Works and Housing, Mr Babatunde Fashola, SAN, for the choice of Sen. Ashafa as the Managing Director of the federal housing agency, noting that the FHA boss’s tenure as Executive Secretary on Land Matters in Lagos boosted the value of land and property in the State.

Ashafa, on his part, said FHA was ready to resolve all lingering crises delaying the re-modelling and regeneration of Festac Town, expressing confidence that the mid-way approach adopted by the agency would yield a positive outcome for both the Government and residents of the estate.

He described his meeting with the Governor as productive and fruitful, pledging to take the discussion further. He also acknowledged that all the 4 issues they presented were taken in by the Governor positively.

CONTINUE READING BUSINESSNESG’s allegations, malicious attempt to tarnish the economic recovery program- CBNPublished 15 hours ago on September 9, 2020 By Chidi Emenike CBN injects $218.41 million in SMIS, Coronavirus: CBN advises Nigerians to go cashless ahead of April 1 set date, Financial sector to offer skeletal services despite restrictions, COVID-19: CBN warns of cybercriminals, outlines the methods they use

The Central Bank of Nigeria (CBN), has reacted to the allegations levied against it by the Nigeria Economic Summit Group (NESG) describing it a “malicious attempt by the group to tarnish the economic recovery program of the apex bank.”

The CBN, while admitting to taking extraordinary measures in order to stabilize the economy, fact-checked the issues raised by NESG.

Contrary to NESG’s allegation that the recipients of intervention funds did not go through required processes, the apex bank insisted that the beneficiaries went through an expansive process of Participating Financial Institution (PFI), and additional assessments by the CBN before disbursements.

READ: What you need to know as banks rebrand CBN intervention funds to woo borrowers

On FX, it explained that the CBN operates two windows: wholesale and retail.

It stated, “In wholesale, Banks are allocated FOREX weekly, which they allocate to their customers, reflecting customer size and distributive efficiency and that the CBN does not know the final buyers of this FX.

“In Retail, the banks scrutinize and submit a detailed list of applicants who are then allocated FX based on availability.”

The group had earlier raised concerns over some of the measures taken by CBN to support the stability of our financial system and enable faster economic recovery.

READ: CBN bars Payment Service Banks from accepting forex deposits

Backstory: The contended article titled, “Matters of Urgent Attention” signed by the CEO, NESG, Laoye Jaiyeola, pinpointed critical issues that should be urgently addressed.

The inappropriate policy clarity with which the CBN has conducted the foreign exchange transactions, loan disbursements (intervention funds), and price-fixing
The immunity conferred on CBN officials via the ‘repealed and re-enacted’ Bank and Other Financial Institutions (BOFAI) Act 2020 recently passed by both houses of the National Assembly
Rate distortions caused by some distortions in the liquidity and interest rate management of our financial system
Meanwhile, in a strong response, the apex bank started by rationalizing the dire impact of the pandemic on the state of the economy, “…the imposed lockdown measures resulted in depressed economic activity in the first half of the year,” noting that except for China and Vietnam, “advanced, emerging, and frontier market economies all experienced significant negative growth in H1 2020, and some are currently in recession.”

READ: BDC operators reveal the major challenge with resumed sales of forex by CBN

Call to Action
The NESG urged the Federal Government to re-open the borders given its negative impact on trade and employment and ratify the African Continental Free Trade Agreement (AfCFTA), so Nigeria can move to full membership status and take its rightful place in subsequent negotiation rounds.

Also, an economist, Mr. Nonso Obikili, via his Twitter handle knocked the CBN stating, “on various intervention programs, in the last decade @cenbank has not published one proper academic style research on the impact of its various interventionist programs. No actual data either. The best way to demonstrate impact is with research and not press releases.”

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READ: With nowhere to invest, Nigerians keep N36 trillion in banks and low yielding assets

The CBN, however, expressed disappointment at NESG’s recommendation, noting that it is not against border reopening but that the real reasons for the border closure which includes the smuggling of fake drugs, arms, and other goods; creating a viable market for the produce of our local farmers, must not be forgotten.

To read the press statement in full, click HERE

Source : Nairametrics
CONTINUE READING BUSINESSFG demands $1.1 billion advance settlement from Eni, Shell in Malabu corruption case
The government of Nigeria has requested advance payment for damages in the Malabu oil scandal.

Published 15 hours ago on September 9, 2020 By Chike Olisah Malabu Scandal: Shell writes down OPL 245 License, Nigerians move to sue Shell in UK over oil spillage

The Federal Government, on Wednesday, September 9, 2020, asked a court in Milan to order Royal Dutch Shell and Eni to pay the sum of $1.092 billion as an immediate advance payment for damages in the Malabu oil scandal, one of the oil industry’s biggest-ever corruption scandals.

During the hearing into the corruption allegation linked to the acquisition of the OPL 245 offshore field by Eni and Shell, lawyer to the Federal Government, asked for advance payment ahead of a more comprehensive damages package to be decided by the court at a later date.

READ: Here’s why Total is selling its 12.5% stake in Nigerian oil block

The case involves the 2011 acquisition of oil block prospecting license by Eni and Shell, following the payment of $1.3 billion to the Nigerian government for the OPL 245 offshore field. However, it was alleged that about $1.1 billion of that amount ended up in the account of Malabu Oil and Gas, which was owned by a former Petroleum Minister, Dan Etete, and was used to pay political bribes.

The prosecutors also alleged that Dan Etete, apart from the politicians, paid some middlemen and then half of it to himself.

READ: Here’s why Total is selling its 12.5% stake in Nigerian oil block

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One thought on “3 Bank Directors Resign From NESG In Protest To CBN Immunity Letter”
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