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CBN Plans Stricter Fines on Banks for Non Compliance with Regulations

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The Central Bank of Nigeria is preparing to impose stricter fines on banks that fail to comply with regulatory standards.

This move, according to the Deputy Director of CBN’s Consumer Protection Department, Jamiu Rabiu, is in response to banks’ lacklustre compliance with consumer protection standards.

Speaking on Monday at a high-level policy roundtable on financial inclusion for Persons with Disabilities, organised by the Consumer Advocacy and Empowerment Foundation, Rabiu highlighted the ineffectiveness of the current N2 to N3 fines in deterring recurring issues in the banking sector.

His remarks were in response to concerns raised by Persons with Disabilities who criticised the CBN for insufficient efforts to promote inclusivity in the financial sector.

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They argued that the current penalties are not strong enough to deter banks from repeatedly violating their rights.

Rabiu said efforts were ongoing to increase the fine imposed on erring banks.

He said, “We’ve made several efforts, even reaching out to the Bankers’ Committee, because they work closely with the banks to address issues at the level of senior government. They’ve created groups aimed at preventing fraud.

“We’ve held discussions and gone over everything, but when things go back to the status quo, the same issues arise. I believe we need to strengthen our regulations and even increase the fines imposed.

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“For instance, Madam mentioned that when we imposed fines of around N2m to N3m, it wasn’t yielding significant results. Whenever there’s an issue, the banks don’t always act.

“Recently, our Deputy Governor questioned why we were imposing only 2 million in fines. We are now considering increasing these fines. If payments are not made within a specified period, there will be an additional 2 million charge per day.”

He added, “Or if payment takes 6 months, we would calculate the total days to determine the accumulated fine. I believe increasing these fines is essential. This is a work in progress.”

He noted that the CBN would have to get the buy-in of the banking authorities to increase the fines to ensure better compliance from banks.

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Rabiu said, “We need to coordinate with the banking authorities so that the Deputy Governor can approve higher fine amounts, not just 5 or 10 million. We are aiming to raise it to around 100 million, which we believe would drive better compliance from the banks.”

The Executive Director of CADEF, Professor Chiso Ndukwe-Okafor, stressed the importance of these changes, particularly for PWDs, who often struggle to access digital financial services due to inadequate infrastructure.

She said, “The meeting with stakeholders was organised because of the challenges PWDs encounter accessing digital financial services. We realise that their needs are not being met. by the financial institutions whether online or offline.

“We are collaborating with CBN, FCCPC and a technical committee that would come up with a person with Disabilities bill of rights so that enforcement and sanction can be given. “

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Land tussle: Court grant Gowon, Sultan’s request to challenge verdict

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The Court of Appeal in Abuja has granted leave to former Head of State, Gen. Yakubu Gowon and others to challenge the judgment of a High Court of the Federal Capital Territory (FCT) in the Barewa Old Boys Association (BOBA)’s land dispute.

The Sultan of Sokoto, Alhaji Saad Abubakar III, who is also a member of BOBA, including the school’s old boys association, are challenging the lower court judgment.

The court further dismissed the preliminary objection filed by Eagle Aluminium Industries Limited seeking to stop BOBA from filing a cross appeal.

In a unanimous ruling, a three-member panel of the appellate court held that the objection of Eagle Aluminium was an abuse of court process.

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Justice Peter Chudi Obiorah, who delivered the ruling, held that the objection was pre-emptive and presumptuous as it was against the rules of the court.

“There is no provision in the Court of Appeal Rules, 2021, where a party served with a motion on notice and who wishes to oppose the application is permitted to do so by the filing of preliminary objection.

“Parties are not allowed to invent their own rules at their whims and caprice,” the judge said.

The ruling was endorsed by Justice Hamma Akawu Barka and Justice Ishaq Mohammed Sani.

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The land, which was in the trust of the Gen. Gowon-led Board of Trustees (BoT), was sometime in 2007, reallocated to Haida Properties.

In 2009, the same plot of land was reallocated to Eagle Aluminum belonging to Mr Linus Ukachukwu unknown to the BoT of BOBA.

The alumni body, with the ruling, will join Eagle Aluminium Ltd as well as the Minister of the FCT and the FCTA in challenging the December 2020 judgment of the lower court that conferred ownership of the disputed 6, 500 square meters land on Haida Properties Limited.

The Court of Appeal had earlier declined to endorse a bilateral settlement agreement reached between Eagle Aluminium and Haida Properties to jointly develop the disputed land because the settlement agreement did not include other parties in the land dispute.

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The alumni association, with Gowon, the Sultan of Sokoto and Justice Lawal Uwais (rtd.) on its BoT, had also filed a petition against a lawyer, Stella Oyiugo, at the Legal Practitioners Disciplinary Committee for allegedly representing the association in court without authorisation.

The Inspector-General of Police had also filed criminal charges against the suspects indicted by the investigation report on the same land deal, but the suspects are yet to be arraigned.

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US based foundation offers detained Anambra witch doctors legal services

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A charity foundation and equal rights group based in the United States of America, Tilova for Africa, has offered to pay for the services of lawyers who will defend the rights of over 30 native doctors arrested and detained by the Anambra State government.

The Chief Executive Officer of Tilova for Africa, Martins Nwabueze, stated this in Awka on Monday, while addressing journalists amidst widespread reactions trailing the heavy clampdown on native doctors across the state.

It was gathered that no fewer than 30 native doctors have been arrested and detained by the state government since the state assembly passed the Anambra Homeland Security Law in January as part of efforts to tackle insecurity.

Recall that the state commissioner for information, Dr Law Mefor, has confirmed that notable native doctors such as Chiedozie Nwangwu, popularly known as “Akwa okuko tiwaraki”, Onyebuchi Okocha, and 28 other native doctors were still in detention and undergoing investigation for allegedly preparing charms for criminals.

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Nwabueze, who was reacting to these developments, described the arrest and detention of persons based on their religion or trade under the guise of fighting insecurity by the Anambra government as “unjust profiling.”

He said, “As a foundation, we shall work to ensure that these people enjoy equal rights like others, so, we are volunteering to provide free legal services for these people.

“We are aware of the enormous safety concerns in Anambra, but we should not allow the cyber antics of a few clowns parading as native doctors to make us enact laws that could impact the way of life and belief system of a people negatively.

“Nigeria is a secular state where everyone had rights to practice his or her religion or ply his or her trade without discrimination, intimidation, humiliation or scapegoating.”

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He added that traditional medicine practice is an age-long profession which existed in many African societies and should not be abolished in Anambra because of presumptive evidence.

Nwabueze said his group was in total support of whatever would bring peace and security in Anambra, but insisted that nobody or group should be discriminated against because of their religion.

He urged the Anambra State government to release the native doctors if there was no evidence against them instead of keeping them perpetually in detention.

“Tilova for Africa has followed the development in Anambra State with concern; while we support the state governor on the effort to make the state safe and secure, we condemn the crackdown on indigenous religious practices in the State.

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“The arrest and continued detention of over 30 native doctors by the Anambra State government just because it presumes that they prepare charms for criminals is not tenable.

“This type of crime fighting is primitive and unacceptable in 21st century Nigeria; we support the government to arrest crime and not content creators,” he added.

Nwabueze called on Soludo to invest in tech-driven security architecture with adequately trained manpower to ensure that only culprits were arrested, detained and prosecuted.

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LG chairman, vice fired over financial infractions

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Shira Local Government Council of Bauchi State on Monday disclosed the impeachment of the Local Government chairman, Abdullahi Beli, and his deputy, Usman Adamu.

The pronouncement was made in a statement issued by the Shira Local Government Council, led by Wali Adamu.

The statement resolution number SLGLC 003 revealed that following a committee investigation that found the impeached chairman and his deputy guilty of gross misconduct, financial mismanagement, failure to perform duties, and abuse of office.

This council hereby removes the Chairman (Hon. Abdullahi Ibrahim Beli) and his deputy, Hon Usman Adamu, from office as Chairman and Vice Chairman of Shira Local Government, respectively, effective immediately from today.

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The statement read, “Grounds for Removal:

The removal of the Chairman and his deputy is based on the findings of the investigation committee, which has established that the Chairman and his deputy were engaged in financial mismanagement, failed to perform their duties, breached the trust placed in them and abused their office.”

The statement maintained that “This Council hereby declares the office of the Chairman and Vice Chairman of Shira Local Government Vacant.”

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