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FX transactions: CBN directs fintechs to halt registration of new customers

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Two Nigerian fintech companies have paused enrollment of new customers following a directive from the Central Bank of Nigeria (CBN).

The affected fintechs are Opay and Moniepoint.

Confirming the development to newsmen on Monday, an official at one of the fintech firms, who spoke on condition of anonymity, said they have started complying with the directive.

“I can tell you that compliance is on. You can try onboarding to see that we have complied,” the official said.

Another fintech official also confirmed the situation, hinting CBN’s directive is related to foreign exchange (FX) transactions, which the firm has no business with.

Newsmen also attempted to open a new account with one of the fintech but a message from the platform said “we couldn’t complete your account opening process. We will let you know as soon as we can”.

The development is coming amid the federal government’s effort to address illicit foreign exchange transactions in the country as well as operations of Binance and other cryptocurrency exchange platforms.

On February 27, Olayemi Cardoso, CBN governor, said $26 billion passed through Binance Nigeria from unidentified sources in one year.

Cardoso said the apex bank was collaborating with different agencies, including the Economic and Financial Crimes Commission (EFCC), the police, and the office of the national security adviser (NSA) to tackle illicit financial flows in the country.

On April 23, the EFCC said it froze over 300 accounts linked to illicit foreign exchange (FX) trading.

Meanwhile, in a ruling delivered on April 24, a federal high court in Abuja has granted an interim order to the EFCC to freeze at least 1,146 bank accounts belonging to individuals and companies over “unauthorised foreign exchange” transactions.

Business

UK regulator reports Air Peace over alleged safety violation

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The United Kingdom Civil Aviation Authority has written Nigeria’s Civil Aviation Authority stating Air Peace has reportedly violated some aviation safety regulations

The development came barely three months after the Nigerian carrier commenced the Lagos-London route.

Two mandatory occurrence reports on Air Peace had been reportedly sent to the United Kingdom Civil Aviation Authority.

The UK CAA, in turn, forwarded the complaints to the NCAA.

The CAA’s letter of complaint forwarded to NCAA was entitled; ‘United Kingdom SAFA Ramp Inspection Report with reference number: CAA-UK, -2024-0217’ and ‘NATS Management System Safety Report.’

The NCAA has also written to Air Peace to provide clarification on the issues.

The letter, with reference number: NCAA/DOLTS/APL/Vol.11/03624 was titled, “United Kingdom SAFA Ramp Inspection Report.

It was dated May 14, 2024, and signed by the NCAA General Manager of Operations, Capt. O.O. Lawani.

In the letter, the NCAA said the UK CAA had called its attention to the no operational approval of Electronic Flight Bag functions affecting the safe operation of the aircraft, while adding that the captain of the flight admitted that an Electronic Flight Bag was being used for navigational purposes.

NCAA further noted that the CAA stated in its letter that there was “no mounting device for the use of EFB, no charging points or battery for backup.”

Air Peace recently commenced operation to London Gatwick from the Murtala Muhammed International Airport, Lagos under the Bilateral Air Services Agreement, which Nigeria has with the UK.

The spokesperson of Air Peace, Stanley Olisa, could not be reached as of press time.

When called, the spokesperson of the airline picked but when this reporter began to enquire about the development, he kept mute until the call ended.

Newsmen also sent a text message of enquiry to the spokesman but there was no response as of the time of filing this report.

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Business

CBN withdraws cybersecurity levy directive to banks

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The Central Bank of Nigeria (CBN) has withdrawn the directive to banks and other financial institutions to charge cybersecurity levy on electronic transfers.

On May 6, the apex bank directed all commercial, merchant, non-interest and payment service banks, mobile money operators and payment service providers to charge a 0.5 percent cybersecurity levy on electronic transfers.

According to the apex bank, the deduction and collection of the cybersecurity levy is a sequel to the enactment of the Cybercrime (prohibition, prevention etc) Amendment Act of 2024.

CBN said the charges would be remitted to the national cyber security fund, and be administered by the office of the national security adviser (ONSA).

However, CBN halted the move to charge the cybersecurity levy in a circular titled ‘Re: Cybercrimes (Prohibition, Prevention, ETC) (Amendment) Act 2024 — Implementation Guidance on the Collection and Remittance of the National Cybersecurity Levy,’ and dated May 17.

The circular made public on May 19 was signed by Chibuzo Efobi, director, payments system management department, and Haruna Mustafa, director, financial policy and regulation department.

“The Central Bank of Nigeria circular dated May 6, 2024 (Ref:PSMD/DIR/PUB/LAB/017/004) on the above subject refers,” CBN said.

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Nigeria to stop petrol importation in June, says Dangote

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Aliko Dangote, Africa’s richest person, says Nigeria will stop importation of petrol into the country by June.

Dangote spoke at the Africa CEO Forum Annual Summit in Kigali on Friday.

He said the country should end petrol imports by June when Dangote refinery commences production of the product.

“Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of litre,” he said.

Consequently, Dangote said the shortfall in the supply of petrol will be addressed not only in Nigeria but other West African countries.

“We have enough gasoline to give to at least the entire West Africa. We have enough diesel to give to West Africa and Central Africa,” he said.

Dangote said there is enough aviation fuel to meet the continent’s demands, as well as export to Brazil and Mexico.

Speaking on the commencement of petrol production by the refiner, Dangote said “next month, we will be producing diesel and gasoline”.

He said the refinery would take most African crude grades.

DANGOTE SAYS REFINER WILL NOT FOCUS ONLY ON PETROLEUM PRODUCTS

Dangote said the refiner would not only focus on producing petroleum products.

“Today, our polypropylene and our polyethene will meet the entire demand of Africa and we are doing base oil, which is to do like engine oil,” he said.

“We are doing linear benzyl, which is raw material to produce LLB, which is raw material to produce detergent. We have 1.4 billion population and nobody is producing that in Africa.”

He said all the raw materials detergents are being imported into Africa, adding that the refinery is producing these raw materials to make Africa self-sufficient.

“As I said, give us three and a maximum of four years and Africa will not, I repeat, not import any more fertilizer from anywhere. We will make Africa self-sufficient in potash, phosphate (even if we don’t have enough, there is a lot in Morocco. But we are also looking at the opportunities,” he said

“For our urea, we are at three million tonnes and in the next twenty months, we will be at six million tonnes of urea which is the entire capacity of Egypt.”

The business mogul said the refiner has 650,000 barrels per day, one million tonnes of polypropylene, 590,000 carbon black — the raw materials ink, dyes and others.

Dangote said the second phase of the refinery will start early next year.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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