News

UNCOMMON: Nominee rejects CBN board appointment in Nigeria

Published

8 months ago

March 1, 2024

The Southeast nominee for membership of the Central Bank of Nigeria (CBN‘s) board of directors, Urum Kalu Eke, has rejected his appointment.

The Senate however confirmed the appointments of four others.

Rejection of appointment of membership of CBN board of directors by Eke from Abia state, came to the fore on Thursday during confirmation of appointments of four other nominees by the Senate.

The chairman of Senate Committee on Banking, Insurance and other Financial Institutions, Senator Adetokunbo Abiru (APC Lagos East), had in his report presentation for confirmation of the nominees by the Senate after screening exercise carried out on them, informed his colleagues that Mr Urum Kalu Eke didn’t attend the session.

He specifically informed the Senate that four other nominees – Mr Robert Agbede, Mr Ado Yakubu Wanka, Professor Murtala Sabo Sagagi and Mrs Muslimat Olanike Aliyu, appeared before the committee for screening and convinced it of their suitability for the appointments.

He thereafter, urged the Senate to confirm the appointments of the four nominees who attended the screening session and decline that of Kalu Eke who didn’t attend the screening exercise.

But for purpose of clarity, a member of the Committee, Senator Orji Uzor Kalu (APC Abia North), quickly rose to inform the Senate that Urum Kalu Eke being one of his constituents, told him that he was declining the appointment to avoid conflict of interest.

According to Senator Kalu, Urum Eke, is a consultant to the World Bank and other international financial institutions which would make him not have the required time to function well as a CBN director.

“Mr President, I’m a member of the committee that carried out screening on nominees forwarded to the Senate for appointment as members of Board of Directors of CBN by President Bola Tinubu”, Senator Kau said.

He added: “During the screening exercise, Urum Kalu Eke from Abia North, called me for not attending the session.

“He said as a consultant to the World Bank and other international financial institutions, he wouldn’t take the appointment to avoid conflict of interest.”

Who’s Urum Kalu Eke?
Urum Kalu Eke is a prominent figure in the Nigerian banking industry. He was born on October 17, 1966, in the town of Umuahia in Abia State, Nigeria. He obtained his Bachelor’s degree in accounting from the University of Nigeria, Nsukka, and subsequently went on to obtain a Master’s degree in business administration from the same institution.

Career
Eke has had an illustrious career in the banking industry, spanning over three decades. He began his banking career with Diamond Bank in 1992, where he worked in various capacities, including as an executive director and deputy managing director.

In 2014, he was appointed as the Group Managing Director/CEO of Fidelity Bank Plc, one of the top 10 commercial banks in Nigeria. Under his leadership, Fidelity Bank has made significant strides in the areas of digital banking, innovation, and sustainability.

Achievements
Eke has received numerous accolades and recognitions for his contributions to the banking industry. In 2020, he was named the Bank CEO of the Year at the BusinessDay Banks and Other Financial Institutions (BOFI) Awards.

He has also been recognized by various organizations for his leadership and achievements in the banking industry, including being named as one of the Top 50 CEOs in Nigeria by BusinessDay in 2019.

Personal Life
Eke is married with children and is known to be a private person who values his family time. He is also known for his philanthropic activities, including supporting education and healthcare initiatives in his community.

News

Justice Gonçalves Elected New President Of ECOWAS Court Of Justice

Published

5 hours ago

October 15, 2024

Gloria Ikibah

By Gloria Ikibah

Honourable Justice Ricardo Claúdio Monteiro Gonçalves has been elected as the new President of the ECOWAS Court of Justice for a two-year term of office, following an election by the college of five judges of the Court.

In a statement issued by the Communication division of the Community Court, on Monday, October 14, 2024, Hon. Justice Gonçalves succeeds Hon. Justice Edward Amoako Asante who led the Court for six years since assuming office on July 31, 2018.

In the same election, Hon. Justice Sengu Mohamed Koroma was elected as Vice-President, succeeding Hon. Justice Gberi-bè Ouattara.

Justice Gonçalves from Cabo Verde and Justice Sengu M. Koroma from Sierra Leone were sworn-in on Thursday, October 6, 2022 in Guinea Bissau by former President of the Conference of Heads of State and Government of the Community, President Umaro Sissoco Embalo for a non-renewable term of four (4) years.

In his inaugural speech, the President-elect, Justice Gonçalves outlined his vision for the Court, which focused on two fundamental pillars: responsibility and dialogue. He emphasised the responsibility entrusted to the Court by the ECOWAS laws establishing the Court.

He also stressed the need to uphold the institution’s mission as an independent, reliable, efficient, and accessible court.

Justice Gonçalves expressed his commitment to foster continuous dialogue with other institutions and agencies of

ECOWAS, Member States, civil societies among others, while also ensuring financial prudence in the administration of the institution’s fund.

The other three judges of the Court are the out-going president, Justice Edward Amoako Asante (Ghana), the out-going vice-president, Justice Gberi-bè Ouattara (Côte d’Ivoire) and Justice Dupe Atoki Nigeria.

News

CBN Says Recapitalization Policy Strengthened Financial Position Of Banks

Published

6 hours ago

October 15, 2024

Gloria Ikibah

…as macroeconomic performance projection indicate 3.2%, 3.3% growth rate for 2024, 2025 respectively

By Gloria Ikibah

The Governor of Central Bank of Nigeria (CBN), Yemi Cardoso, has highlighted plans of the Apex bank to address the spiralling inflation in the country.

Cardoso also said the Bank’s recapitalization policy has prompted banks to strengthen their financial positions, a process which he said was expected to result in a more robust and resilient banking sector by March 2026.

The CBN Governor who stated this while addressing the House of Representatives Committee on Banking, on the on policy measures and strategies to address domestic macroeconomic challenges.

The exercise, according to him, is expected to support the realisation of $1 trillion economy by the year 2030.

On the macroeconomic performance in 2024, he said projections indicates a growth rate of 3.2% and 3.3% for 2024 and 2025 respectively, and that Nigeria is projected to maintain a more robust 4.3% growth rate.

Cardoso said the non-oil sector maintained strong performance, contributing 94.30% to GDP with a steady 2.80% growth rate.

He added that the oil sector’s growth rate has almost doubled to 10.15% in Q2, 2024 from 5.70% in Q1, 2024, due mainly to improved security surveillance which resulted in increased production of crude oil and natural gas.

He said the Services sector continues to be the primary economic driver, contributing 58.76% to GDP with a robust growth rate of 3.79%.

Similarly, he said the Industrial sector has shown remarkable improvement, with its growth rate surging to 3.53% from 0.31%.

He pointed out that the contribution of agriculture to total GDP also increased, in addition, the growth rate of the sector rose to 1.41%, from a negative territory of -0.90%, indicating a substantial turnaround in productivity.

He also said the foreign exchange reserves have grown significantly, with remittance flows currently representing 9.4 per cent of total external reserves.

The CBN Governor further stated that the reserves grew by 12.74% to US$39.12 billion as of October 11, 2024, from US$34.70 billion at end-June 2024, driven largely by foreign capital inflows, receipts from crude oil related taxes and third-party.

“In Q2 2024, we maintained a current account surplus and saw remarkable improvements in our trade balance”, he said.

Cardoso further explained that the current external reserve position is able to finance over 12 months of import of goods and services, or 15 months of goods only.

“This is substantially higher than the prescribed international benchmark of 3.0 months, reflecting a robust buffer against external shocks.

“Inflation trended upward, driven largely by high food prices, cost of energy and legacy infrastructural challenges, but it commenced deceleration from 34.19% in June 2024 and to 33.40% in July 2024.

“The moderation in inflation became more pronounced in August 2024, as headline inflation further eased to 32.15%, largely attributed to monetary policy measures taken by the Bank”, he added.

” With aggressive monetary policy tightening coupled with robust monetary- fiscal policy coordination, inflation is expected to further trend downward in the near-to-medium term, Cardoso said.

“To combat inflation, he said they had fully reverted to orthodox monetary policy approach and implemented a comprehensive set of monetary policy measures.

“These include raising the policy rate by 850 basis points to 27.25%, increasing Cash Reserve Ratios and normalising Open Market Operations as our primary liquidity management tool.

“In addition, we have adopted an Inflation-Targeting (IT) monetary policy framework as part of the Bank’s Enterprise Strategy (2024 2028).

“The IT framework, widely adopted across various global economies, is renowned for its effectiveness in combating persistent inflation.

“These integrated measures are aimed at stabilizing prices, optimizing liquidity management, and engendering an effective monetary policy framework.

“Regarding the foreign exchange market, the the Bank implemented various reforms including a unification strategy, which streamlined various exchange rate windows into a single model, adopting the ‘Willing Buyer, Willing Seller’ approach to enhance FX liquidity and financial market stability.

“This move was aimed at fostering transparency, reducing market distortions, and enhancing the efficiency of foreign exchange allocations.

“This consolidation involved the implementation of new operational guidelines, which included removing the International Money Transfer Operators (IMTOS) quote cap.

“Additionally, the Bank resumed the sales of FX at the Nigerian Autonomous Foreign Exchange Market (NAFEM) and Bureau De Change (BDC) segments, bolstered by an improved supply from Foreign Portfolio Investors (FPIs)”, he added.

On banking supervision, Cardoso emphasised that the CBN has taken decisive actions to ensure the safety, soundness, and resilience of the banking industry.

“One of the key measures include the recapitalization of the banking sector by raising the minimum capital base to support the $1 trillion economy envisioned by the Federal Government of Nigeria (FGN) by 2030.

“Banks are required to meet these new thresholds by March 31, 2026, with several options available for reaching these targets.

“These options include issuing of new equities, engaging in mergers and acquisitions, or adjusting their operational licenses. The Bank also revoked the licence of Heritage Bank, facilitated the successful merger of Unity Bank and Providus Bank, revised Cybersecurity Rules for Banks and PSPs, suspension of processing fees on cash deposits, and enhanced Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) supervision, amongst others”, he stated.

On Monetary and fiscal policy coordination, he said they had strengthened collaboration during the period under review.

“In this regard, several joint committees have been instituted to build synergy and to provide platforms for key stakeholders’ engagements to explore ways through which monetary policy implementation and fiscal operations can be conducted in a mutually reinforcing manner.

“Overall, our policy measures reflect a holistic approach to addressing various challenges in the economy. While some measures have immediate effects, others are designed to bring about long-term structural changes. Our ultimate goal is to create a more stable, resilient, and efficient monetary and financial system that can better serve the Nigerian economy, while adhering to global best practices”, he noted.

Cardoso said the Bank’s numerous policy initiatives have begun to yield significant results across various sectors of the economy.

He said: “In the foreign exchange market, we have achieved increased transparency and improved overall supply. By allowing the foreign exchange rate to be determined by market demand and supply, the CBN has reduced arbitrage and speculative activities, and eliminated the front-loading of FX demand.

“These policy measures have effectively narrowed the exchange rate disparities between the NAFEM and BDC segments, which have largely led to the convergence of FX rates. Improved transparency in the market has restored market confidence leading to increased capital inflows which enabled the CBN to clear existing FX backlogs.

“The settlement of all legitimate backlogs of outstanding FX obligations by the Bank has significantly improved Nigeria’s credibility and ratings across the global financial market, helping to boost investor confidence, and enhanced liquidity in the foreign exchange market.

“With improved investor confidence, foreign investments have increased as evidenced by a significant rise in capital importation by 65.56% to $6.49 billion between January and July 2024, compared to US$3.92 billion in the corresponding period of 2023.

“Collectively, these actions have contributed significantly to the stability of the financial system. While inflation remains a major concern, we are not relenting in ensuring that requisite measures are taken.

“Headline inflation slightly increased from 32.15% in August to 32.70% in September 2024. The MPC further tightened the policy rate in its September meeting in anticipation of an uptick in inflation due to the upward adjustment of the petroleum pump price.

“On a positive note, there was a moderation in core inflation from 27.58% to 27.43% over the same period. We therefore expect the year to end with significant moderation in inflation, as our policy measures permeate the real economy,” he said.

On the outlook for the economy, Cardoso said he was confident as the country expects continued positive growth, especially in the non-oil, oil and industrial sectors.

News

Nigeria’s inflation rate hits 32.7%

Published

6 hours ago

October 15, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The National Bureau of Statistics (NBS) says the consumer price index (CPI), which measures the rate of change in prices of goods and services, rose to 32.7 percent in September.

This is the first increase in three months after the country’s inflation rate declined twice in 2024.

The latest inflation data is contained in the NBS CPI report for September, released on Tuesday.

More to follow…

THE CABLE