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CBN fire commercial bank directors

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The Central Bank of Nigeria ( CBN) have fired few bank directors following cases of insider abuse relating to non-performing loans, it has been learnt.

Specifically, the banking sector regulators, the CBN and the Nigeria Deposit Insurance Corporation, have in their books records of bank directors who lost their seats on the Boards of some Deposit Money Banks after being linked to the NPLs.

The Director, Banking Supervision, NDIC, Mr. Adedapo Adeleke, disclosed this in a presentation on the topic: ‘Curtailing the growth of non-performing loans in banks’.

He did not give details of the directors and the banks affected.

Adeleke cited this as one of the outcomes of measures that the regulators had been taking to reduce the growth of bad loans in the financial services industry.

The NDIC director spoke at a training workshop organised for financial journalists by the agency in Kano on Friday.

Adeleke stated, “We have the Code of Corporate Governance and Code for Bank Directors. You sign these codes before you become a director. It is part of the employment terms. One of the things in these codes is that if you are having a non-performing loan, it is a ground to remove you from being a director.

“Some banks have also included this clearly in their Memorandum of Association. So, this is the stand of the regulator in terms of the NPL by a director and it is being enforced. Maybe the regulator has not been dramatic in publishing the names of those that have been removed.”

He said these were part of the measures regulators had taken to address the spate of the NPLs among banks.

According to him, banks’ huge exposure to the oil and gas sector has led to higher NPLs following the decline in oil price in 2014.

He said although the situation had improved, there was a need for the banks to work harder on their capital as higher NPLs had caused erosion of capital and deterioration in their asset quality.

Adeleke recalled that some foreign rating agencies had recently commenced the downgrade of some Nigerian banks over issues traceable partly to asset quality.

The NDIC director also stated that the implementation of the International Financial Reporting Standard 9 would commence on January 1, 2018, and banks would be required to make provisions for expected loan losses.

This is expected to put more pressure on banks’ capital as the lenders will need to use part of their profits to make provision for loans that are expected to become non-performing, after making provisions for those that are already non-performing.

Following the deterioration of the lenders’ capital in the past two years due to the recent recession, dollar shortage and exchange rate challenges, the banks’ capital has become eroded, causing the asset quality to decline.

Adeleke said, “In line with the CBN prudential guidelines, banks make provisions for non-performing loans after 90 days, 180 days and 360 days. But what the IFRS 9 is saying is that if you are expecting a loss, you need to be forward looking by making provision for that loss ahead.”

Source: ( Punch Newspaper )

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Petrol Subsidy Not Completely Gone, Says Minister

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Petrol Subsidy Not Completely Gone, Says Minister

Timipre Slyva

Minister of State for Petroleum Resources, Timipre Sylva has stated that contrary to popular belief, the federal government has not completely removed petrol subsidy.

Speaking on Channels’ Politics Today, the minister said: “We are still trying to manage this bumpy start. We have not been able to get to that 100 percent removal of subsidy from the foreign exchange end.

“If we were to take it out completely and allow people to access foreign exchange from the parallel market and allow people to import the product, the price of the pump will even be more.

Also Read: Petrol Price Will Increase When Oil Goes Up – Sylva

“The Federal Government, knowing the impact it will have on the people, decided that they are still going to manage this situation.”

Speaking on the importation of petrol from Niger, the Minister expressed that the importation of fuel from the Niger Republic is not something Nigerians should be embarrassed about.

He expressed that Nigerians should be proud that the Federal Government is set to resume the importation of petroleum products from its neighbour.

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‘Your Report On Lekki Capable Of Setting Nigeria On Fire’ — Lai Writes CNN

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JustLai MohammedMinister of Information and Culture, Lai Mohammed has expressed that the CNN report on the Lekki Tollgate shooting of October 20 2020 is capable of setting the country on fire.

Recall that CNN had published an investigative report titled, ‘How a bloody night of bullets and brutality quashed a young protest movement in Nigeria,’ claiming soldiers fired live ammunition directly at protesters at the Lekki toll gate.

But Nigeria’s Minister for Information denied the report of the US-based cable television, calling for a sanction on CNN over the report, adding that the report on the Lekki tollgate incident was highly irresponsible.

Also Read: Lai Mohammed Condemns CNN Investigation On Lekki Shooting

Reacting in another story titled, ‘Nigeria threatens CNN with sanctions but provides no evidence Lekki toll gate investigation is inaccurate’, CNN maintained that it stood by its earlier report on the Lekki tollgate incident.

In a petition dated November 23 and addressed to Mr. Jonathan Hawkins VP, Communications, CNN Centre Atlanta, Georgia U.S, the federal government demanded “an immediate and exhaustive investigation into its report on the Lekki Toll Gate incident to determine its authenticity and conformity to basic standards of journalism.”

Lai Mohammed, who signed the petition, said if the US-based media organisation failed to carry out its demand, the Nigerian government will “take any action within its laws’’ to prevent CNN from aggravating the End SARS crisis.

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Amaechi Apologises For Abuja-Kaduna Train Breakdown

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Amaechi Apologises For Abuja-Kaduna Train Breakdown

Rotimi Amaechi

Minister of Transportation, Rotimi Amaechi, has apologised to Nigerians for the breakdown at the Abuja-Kaduna railway which occurred between November 18 and November 20.

The former Governor of Rivers State stated this at the Moniya rail station on Monday while inspecting the ongoing rail project in Ibadan.

Amaechi pointed out that the Chinese have been called to attend to the problem as the federal government does not expect any mechanical fault at this early stage.

Also Read: $656m Needed To Complete Lagos-Ibadan Railway – Amaechi

Ameachi said, “I want to apologise to Nigerians over what happened at the Abuja-Kaduna rail station.”

“We now have new locomotives, and we’ve called the Chinese because we never expected the mechanical fault at this early stage.”

“On behalf of the Federal Government, the ministry and the Nigerian Railway Corporation (NRC), we apologise to Nigerians, and I’ve instructed the NRC to fix it or invite the Chinese.”

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