News

Just in: CBN To Deal With Banks For Not Dispensing Cash Via ATMs

Published

4 months ago

September 25, 2024

By Kayode Sanni-Arewa

The Central Bank of Nigeria (CBN) has announced that it will sanction banks failing to dispense cash through their automated teller machine (ATMs), as part of efforts to ensure sufficient cash in circulation.

This Nigeria news platform understands that CBN Governor, Yemi Cardoso said this during a press briefing at the end of the 297th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.

The governor emphasized that all deposit money banks must ensure there is always enough cash available for withdrawals.

CBN monitors banks
The CBN governor said that the apex bank has set up a monitoring system to ensure compliance, and any bank not adhering to this directive will face penalties.

Cardoso reiterated that the CBN’s monitoring and spot-checking system would keep track of banks’ compliance, and those failing to meet the requirement would be sanctioned.

He said: “We ourselves, have devised a monitoring system, a spot-checking system, whereby we will go to the banks and just ensure that these things are done in the way and manner in which they are meant to be done.

“And if they are not, again, there will be sanctions but I believe that at the stage we are in now, everybody realises that stakeholders play their part in ensuring that cash gets to the desired places they are intended to be.”

N1.4 trillion to be released in next three months
Cardoso further disclosed that the CBN plans to release an additional N1.4 trillion into circulation over the next three months to improve cash flow within the banking system.

This move, he said, is aimed at ensuring sufficient cash availability in ATMs and across bank branches, addressing the challenges of cash insufficiency that many customers have faced.

He said: “Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system and cash velocity.

“So, from our perspective, we are doing everything possible to ensure that there is sufficient cash in the system. There is no excuse for not having sufficient cash in the system.

“Now it goes to the deployment of that cash and quite frankly, we are working very, very closely, we are engaging with all the deposit money banks to ensure that they are putting these things through their ATMs, effectively dispensing cash to those that are in need.

“And whether they are in need or not, that’s the function of the deposit money banks. And at all points in time, there should be sufficient cash in their system that nobody should go there without being able to withdraw.”

News

How BPP Saved Nigeria N1.9 Trillion in 15 Years – DG

Published

20 minutes ago

January 20, 2025

Gloria Ikibah

By Gloria Ikibah

The Bureau of Public Procurement (BPP) has revealed that it saved Nigeria a total of N1.9 trillion by reviewing procurement processes and verifying contract sums from 2009 to 2023.

The Director-General, Dr. Adebowale Adedokun, stated during a budget defense session with the House of Representatives Committee on Public Procurement on Monday in Abuja.

He said: “Mr. Chairman, the Bureau’s Price Intelligence mechanism has generated significant savings to the federal government. The prior review of procurements and the verification of contract sums and approach, has resulted in cumulative savings of over N1.9trillion , and this has prevented funds from being diverted into personal pockets.

“This process also helps to reduce excessive projects costs and release more funds for other development investments”.

According to the BPP Boss these include in 2009 N46.519bn, 2010 N216.690bn, 2011:NN77.652bn, 2012:N124.113bn, 2013: N95.797bn, 2014: N127.368bn and 2015:

N49.519bn.

The rest are 2016: N32.398bn, 2017:N78.977bn, 2018:N170.485bn, 2019: N49.142bn, 2020:N172.676bn, 2021:N146.961bn, 2022:N365.568bn and 2023: N146.410bn totalling N1,900,282,844,421.28 trillion.

He said that beyond the direct savings, the bureau’s compliance mechanisms have also played a role in boosting revenue by ensuring bidders are up-to-date on their tax, pension, and social security payments before participating in any procurement process.

However, the Director-General expressed concern over the budgetary ceiling imposed on the agency, which he feared could undermine this and other strategies designed to enhance the system.

During the budget planning process, the Bureau requested N72,775,250,713, but the Budget Office allocated only N3,283,021,838, excluding the Personnel budget of N649,558,451.59.

Regarding the 2024 budget performance, he noted that N2,234,785,641 was allocated, with N2,110,061,164 utilized. However, the capital allocation of N289,418,688 was insufficient to achieve significant reforms or address the core mandates needed for effective contract administration. So far, only N184,024,690 of the capital expenditure allocation has been released.

For the 2025 budget, Adedokun highlighted the agency’s focus on addressing office accommodation needs, improving project monitoring and evaluation across the country, implementing an electronic procurement system, and enhancing capacity building.

While thanking the Committee for its continued support, he appealed for additional funding to help the Bureau meet its objectives.

“We also realise that we need to also intensify our audit exercise. It is better to prevent than to prosecute. Under our watch our strategy is to ensure we prevent misuse of funds through real time IT tools in procurement audit.

“We want to go digital in terms of our workflow, which means even if DG is not on seat, certification can be done anywhere in the country. We also provided for an upgrade of our national database of contractors and service providers.

“Under the 2025 budget, it would no longer be business as usual. We will be categorizing contractors meaning that contractors of equal competence must bid for projects within their funding capacity.

“I want to assure you that we have the capacity to transform the procurement space within the shortest possible time. We will do more if empowered financially.

“If we use procurement as a tool for good governance, it would reduce corruption and poverty and increase employment and industry if this appeal is given due consideration.

“BPP has the capacity to contribute significantly to the GDP of the country through the innovations we are bringing on board”, he stated.

Adedokun said the various achievements by the Agency over the years has been with very limited funding.

He said under his administration the Bureau is committed to making the contracting process even more efficient, transparent and competitive for foreign and local contractors.

Chairman of the Committee, Unyime Idem, said they were mindful of the ceiling imposed on the agency and would do something about that.

“I want to assure you that what you have seen before us the proposal, so we would engage the committee in charge of appropriation to ensure that those inadequacies in terms of funding are addressed,” he added.

Idem also said the BPP remains a vital institution for the ability of any government to achieve good governance and deliver the dividends of democracy.

He said if the BPP improves its productivity in playing its full role, it will improve the quality of governance, procurement and project management.

“However, how can the above be achieved without an empowered BPP? I have looked at the data with respect to the allocation to the BPP in 2024, which indicates that it was allocated N2,234,785,641 and N2,110,061,164 was released under the 2024 budget.

“Under the budget proposal before the National Assembly, the Budget Office of the Federation and the Ministry of Budget and National Planning allocated to the BPP a maximum ceiling of N3,383,021,838, excluding personnel cost. This is notwithstanding the impact of inflation between January 2024 and January 2025″.

News

Presidency Slams Kemi Badenoch’s Insultive Remarks About Nigeria

Published

3 hours ago

January 20, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The administration of President Bola Ahmed Tinubu has called on the United Kingdom’s Conservative Party leader, Kemi Badenoch, to stop making disparaging remarks about Nigeria.

The Nigerian-born politician, sparked controversy in 2024 following repeated critical comments about her country of birth.

In her first address of the year at an event hosted by Onward, a British think tank focused on economic and social issues, Badenoch criticized Nigeria’s governance. She stated she did not want Britain to mirror what she described as Nigeria’s “terrible government,” which, in her words, “destroys lives.”

Emphasizing the need for reform and trust-building in governance, Badenoch argued that the Conservative Party was the right choice to steer the UK away from such pitfalls. She warned that without significant changes, Britain could risk adopting systemic flaws similar to those she attributed to Nigeria.

The remarks prompted a response from Daniel Bwala, the Special Adviser to President Tinubu on Policy Communications. In a post on X (formerly Twitter), Bwala urged Badenoch to avoid using Nigeria as a rhetorical tool to gain favor with her political base.

“I truly wish that sister Kemi Badenoch would avoid denigrating Nigeria, the country of her origin, as a weapon to please her far-right base,” Bwala wrote. He drew a parallel with UK Prime Minister Rishi Sunak, noting that Sunak had never criticized India, his ancestral home, to gain political advantage.

Bwala praised Badenoch’s intelligence and political accomplishments but expressed disappointment over her negative rhetoric about Nigeria. “She is smart, intelligent, and we are proud of her rise in UK politics, but we are equally saddened by her terrible rhetoric against Nigeria,” he added.

This development underscores ongoing tensions surrounding the portrayal of Nigeria on international platforms, particularly by individuals with ties to the country. It raises broader questions about the balance between constructive criticism and national pride in political discourse.

News

BREAKING: Falana Declares INEC Should Stop Conducting By-Elections

Published

3 hours ago

January 20, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Constitutional lawyer, Femi Falana (SAN), has called on the Independent National Electoral Commission (INEC), to stop conducting by-elections in the country as such by-elections only lead to unnecessary and wasteful spending of funds.

Falana who made the call in a statement on Sunday, argued that since votes recorded during elections belong to political parties, the replacement of elected candidates as a result of death or resignation should not call for a by-election. “The political parties that sponsored the candidates that die or resign should be directed to fill the vacancy by nominating another candidate,” the lawyer said. He also urged the National Assembly to amend the electoral act to allow parties to replace elected officers without resorting to by-elections.

“The National Assembly should therefore amend the Electoral Act to allow political parties to replace elected public officers who lose their positions as a result of death, resignation or impeachment.

By virtue of Section 221 of the Nigerian Constitution, elections are won by political parties and not by candidates. “In the case of Amaechi vs. INEC & Ors (2 008) LCN/3642 (SC), the Supreme Court held that “The above provision (i.e.Section 221) effectually removes the possibility of independent candidacy in our elections, and places emphasis and responsibility in elections on political parties. Without a political party, a candidate cannot contest

“In his own contribution to the judgment, Pius Olayiwola Aderemi JSC (of blessed memory) emphatically stated that “…it is the political parties that the electorates do vote for at election time. “In P D.P. v. I.N.E.C. (1999)7SC (PT II) 30, Mr. Boni Haruna was allowed to be the governor of Adamawa State following the resignation of the elected governor, Mr Atiku Abubakar, who had been nominated as Vice Presidential candidate of the Peoples Democratic Party. “For some inexplicable reasons, the Independent National Electoral Commission changed the law when it decided to conduct an additional election after the death of Mr. Audu Abubakar who had emerged the Governor of Kogi State,” he said.