Business
Governors to meet Buhari on naira withdrawal limit
- Say CBN’s policy will hurt rural dwellers
State governors have rejected the N100,000 cash withdrawal limit prt week imposed by the Central Bank of Nigeria (CBN) on bank custobers.
They feel the new policy will hurt the economy and rural dwellers in particular.
They also fear that the CBN action may set the masses against the administration of President Muhammadu Buhari.
They have therefore resolved to send a delegation to the President to direct the CBN to review the policy, according to an investigation by The Nation.
The Nigeria Governors Forum (NGF) met on Thursday in Abuja to deliberate on the matter and take appropriate decision. A source at the session said the governors also resolved to appeal to Buhari to retain the prevailing cash withdrawal limits in the country and extend the January 30th, 2023 deadline for the phasing out of the redesigned Naira notes.
“Our decision was across party lines. We were all united that the policy will adversely affect the poor in the rural areas which Buhari administration seeks to protect,” the source said.
He also said, “With likely job losses of about 1.4million by POS operators, there is no way the rural populace can survive this policy. It is like bringing down the ceiling on the economy.
“It is becoming ridiculous that some banks now issue out as low as N2,000 to a customer. Also, no matter how influential you are, banks may only give N200, 000 new notes under the table.
“As governors, we are closer to the grassroots more than the President. This policy may set the masses against Buhari. It is not a good exit package from a President who has enjoyed the confidence of the masses.”
Another governor also said, “We agreed to beg the President to have a rethink and retain the status quo cash limits to save the economy.
“Having tried his best to salvage this economy, no individual should ruin Buhari’s achievements with a stroke of the pen.
“The CBN policy is unpopular but those profiting from it do not want him to see the other side of the coin.”
A governor from the North-East said: “The NGF opted to send a delegation to the President to tell him our feelings and the implications of the CBN policy on the economy.
“For instance, we also recommended that the new notes should be in operation side by side with the old notes for about six months.
“There is too much confusion at the grassroots. It is just unfortunate that the CBN has led us to this level.
“In a country with low access to banks in rural areas and high illiteracy, how do you implement a cashless policy? Already, the middle class is gone and now some people somewhere are out to neutralise the poor class.
“The implication is that crime rate will be higher. Can we afford this? No.
“We want audience with the President. If possible, let the CBN Governor be there. We will lay all the cards on the table and what the nation should do to save the economy from collapse.”
Asked if the governors chose to gang up against the CBN because of lack of access to illicit funds for campaign, the source responded, “Not at all. Governors from all the parties opposed the policy at our meeting.
“We are talking of the survival of a country; you are attributing our position to the 2023 poll which will come and go.
“After the 2023 poll, the political class can effect changes in the CBN. So, at any point, those in charge of the apex bank cannot have the last laugh. There will be life after the elections.
“We believe that they have not told the truth to the President. The CBN’s action is anti-people but the President is pro-people. This is an indication that something is wrong somewhere.”
Some other Nigerians and institutions including the two chambers of the National Assembly had earlier asked the CBN to review the cash withdrawal limit policy immediately, citing the danger it portends for the economy and the generality of Nigerians.
On Friday the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) sent a petition to President Buhari calling for the suspension of the policy to save 1.4million bank agents from losing their means of livelihood.
On the same day the Arewa Consultative Forum (ACF) said in a statement that the CBN’s insistence on implementing the policy would lead to a catastrophic collapse of the informal sector of the economy.
The forum said while the CBN might mean well for the country with the policy, it “evidently failed to consider the unintended consequences of implementing it in the way they have planned; consequences that may be extremely grave.”
It said: “If the CBN insists on implementing this wholly unrealistic policy of restricting individual’s cash withdrawal from the banks to N20,000 per day and N100,000 for a week or N500,000 in the case of corporate bodies, it won’t be long before we suffer a catastrophic collapse of the informal sector of the economy. More than anyone, CBN knows that transactions in commodity markets especially in the rural areas are entirely cash based.
“The villager that brings to the market his chickens, beans, onions, goat or cows does not typically have a bank account or internet skills. Cash remains the overwhelming medium of exchange for much of the country particularly in the North. This should surprise no one as bank offices are largely unavailable even for people who are keen and have the skills to use them.
“Even by the CBN’s reports, over 38 million adults in Nigeria do not currently have access to banking services with “women, rural dwellers, Micro-Small and Medium-Sized Enterprises and Northern Nigeria” being among the most disproportionately excluded. And despite its pious pretensions, it is on record that the CBN under the present management, apparently out of desire to safeguard the interests of the commercial banks, has done much to undermine and stifle the progress of financial inclusion in Nigeria.
-The Nation (excluding headline and minimal editing}
Business
After Multichoice lost 243k subscribers, More customers threaten to leave
After Multichoice lost 243k subscribers, More customers threaten to leave
Multichoice Group, an African pay-TV operator, on Tuesday, announced that its Nigerian subsidiary lost 243,000 subscribers on its Digital Satellite Television (DStv) and General Entertainment on Television (GOtv) services between April and September 2024.
The company revealed these figures in its Interim Financial Results for the period ending 30 September 2024.
MultiChoice attributed this decline to Nigeria’s high inflation rate, which exceeds 30%, driven by the rising costs of food, electricity, and fuel, causing many customers to disconnect.
In its financial report for March 2024, MultiChoice had earlier reported an 18% subscriber loss in Nigeria.
The company further reported a 566,000-subscriber loss in the Rest of Africa (RoA) operations over the past six months, with Zambia and Nigeria contributing the largest shares to this decline.
“The group’s linear subscriber base declined by 11% or 1.8m subscribers YoY to 14.9m active subscribers at 30 September 2024.
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“The loss in the Rest of Africa has been primarily due to the significant consumer pressure in Nigeria, where inflation has remained above 30% for the majority of the last 12 months and, more recently, due to extreme power disruptions in Zambia.
“Of this decline, 298k related to Zambia and 243k related to Nigeria, with remaining markets on the continent reflecting only a minor decline of 25k,” It said.
Meanwhile more customers in Nigeria have threatened to switch allegiance.
While reacting to the story on a WhatsApp platform, a subscriber said: “They will lose more because I’ll soon leave them too.”
On X, @AGUNviews wrote: “They will lose more subscribers”
@Jaheim007: “The numbers are about to triple.”
@skyedron commented: “All anyone needs to acquire is the internet and a few clicks. Multi choice my foot.”
@ribaduabubakar2: “I subscribed to another platform and simply ignored them. They kept increasing the price as if someone would die without them. I am willing to give out my decoder and dish for free.”
@AbelFidelis4: “This is just the beginning. I stopped using DStv in 2022.”
@NdubuisiNC: “The downfall of this company in Nigeria will be televised and will be sweet to me. A company this big can’t improvise on their content?. Nigerians have cried for years about how boring it is, only football channels are what’s keeping most of us.”
@Ekoh4Ekoh: “They should be ready to lose more customers and it is good for them. They have to reduce their monthly subscription and make it pay as you go.”
@cashoggy: “They will still lose more subscribers. Internet and smart TV has rendered Dstv unattractive with their rate. Imagine paying 25,700 for a premium subscription when you can surf the Internet and watch all the programs for less.”
@rilwan_ola01: “They will suffer even greater losses.”
After Multichoice lost 243k subscribers, More customers threaten to leave
Business
XGT Smart Consults unveils renewable energy, others power solutions
XGT Smart Consults unveils renewable energy, others power solutions
XGT Smart Consults, a power solution firm, says it is ready to deliver renewable energy and other long-lasting energy solutions that will address the power challenges causing huge economic losses and discomfort.
The firm also says it has signed an agreement with an India-based company, ADM-Orient Solar Power, to achieve its goals.
This is contained in a statement by the XGT, revealing a holistic approach to energy provision.
It stated, “XGT Smart Consults is thrilled to announce a strategic partnership with ADM-Orient Solar Power (India) aimed at addressing one of Nigeria’s most critical issues – reliable power solutions.”
It stated that its target is to provide Nigeria with solutions to overcome the frequent power outages by empowering homes and businesses with reliable, renewable, and affordable power.
This, it said, would be achieved in conjunction with its partners through renewable energy systems, advanced electrical services, independent power production (IPP) solutions, portable natural gas generators, automation services, and the rental and leasing of CNG tube skids.
Managing Director of XGT Smart Consults Limited, Olu Harrison, said, “The objective is to provide reliable cost-effective and environmentally friendly energy to households and businesses throughout Nigeria.
“Understanding the intricacies of the energy crisis, XGT employs a holistic approach that integrates renewable energy solutions, independent power generation, and innovative technologies tailored to the specific requirements of Nigerian consumers.
“Our goal is to empower every Nigerian household and business by revolutionizing the production, distribution, and consumption of energy.”
According the statement, XGT specifically specializes in providing innovative renewable energy solutions designed to meet the unique climate and energy needs of Nigeria.
“Our wide ranges of solar and sustainable energy systems are suitable for individual homes, corporate settings, and community projects.
“By harnessing the power of renewable energy, XGT offers environmentally friendly alternatives that reduce reliance on the national grid and significantly cut energy costs,” it added.
The company’s Executive Director Toluwase Oni, gave more insights into the IPP for businesses, industries and communities/estates.
“XGT’s IPP solutions provide a solution to the urgent need for self-sufficient power generation, particularly in industrial and commercial sectors where power reliability significantly affects productivity and revenue.
“By establishing a network of captive/ localized, independent power systems, XGT Power-IPP empowers Industries, businesses and communities/estate to take control of their energy needs,” he stated.
Apart from the renewable energy sources, the firm said it offers a range of portable natural gas generators providing a flexible energy solution for areas with limited grid connectivity or for users in need of extra backup during power outages.
“These generators are designed with user-friendly features and portability in mind, enabling users to power essential operations without depending on traditional, often unreliable, grid infrastructure,” it added.
“In conjunction with these generators, XGT specializes in automation systems that optimize energy management to improve efficiency, reduce waste, and streamline operations.
“Automated controls enable businesses to remotely monitor and adjust energy usage, ensuring that energy is utilized intelligently and cost-effectively.”
As part of its services, it disclosed that the company offers rental and lease services for compressed natural gas (CNG) tube skids to interested industries in recognition of the increasing demand for CNG as a cleaner alternative to traditional fuels.
Business
Naira: Confidence in Nigeria’s economy drops, says CBN report
Naira: Confidence in Nigeria’s economy drops, says CBN report
Following continued depreciation in the value of naira, many businesses and their operators have lost confidence in the Nigeria’s economy.
Indeed, a survey by the Central Bank of Nigeria (CBN) showed the Overall Confidence Index falling by 3.2 index points to 14.5 from 17.7 index points.
This was the highlight of the Business Expectation Survey, BES of the Central Bank of Nigeria, CBN, for October which also showed decline in the Overall Confidence Index, OCI, for the current month, next month and the next six months.
According to the CBN the OCI for the current month, next month and the next six months fell to 1.4, 4.8, and 21.8 index points in the October BES from 3.2, 6.2 and 29 index points in the September BES.
The survey also indicates that the decline in confidence in the economy is being driven by firms’ expectation of further depreciation of the naira before the end of the year.
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The CBN said: “The overall confidence index (CI) on the macroeconomy indicates that businesses were optimistic in October 2024.
“Respondent firms expect the naira to depreciate in the current month, next month and next 3 months. However, they expect appreciation in the next 6 months.
“Top six business constraints high interest rate, insecurity, high/multiple taxes, inadequate power supply, unfavorable economic climate, financial problems.
“The optimism on business outlook in the current month is driven by the opinion of respondents from all the Sectors except the Industry Sector.
“Most Sectors expressed optimism on their own operation in the review month. The outlook of respondents on the Volume of Business Activities, the Volume of Total Order, Financial Conditions, and Access to Credit were all positive in the review month.
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