Business
Cash withdrawal limits will send us out of business – POS Terminal operators
The new directive on cash withdrawal by the Central Bank of Nigeria (CBN) on Tuesday is generating heated comments and reactions from Nigerians, especially point of sale (PoS) terminal operators who largely depend on cash to run their business.
FIJ interviewed some operators at Agric and Isawo bus-stops in Ikorodu on Wednesday and they spoke on how the policy would impact their means of livelihood.
A tricycle operator who identified as Kamoli Abayomi explained that the policy would not sit down well with the unbanked and uneducated population, citing an instance of a tricycle dealer in Agric, who doesn’t operate a bank account because he lacks confidence in the banks.
“I heard about the regulations yesterday in a news report. I am concerned about uneducated people and those who do not patronise banks,” Abayomi told FIJ.
“A couple of weeks ago, one old man selling tricycle here (Agric) sold a tricycle for ₦650,000 and he had to acquire the bank information of one of his fellow tenants at their complex to receive the payment.
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“Ordinarily, he prefers customers to pay in cash. If the money is huge, he would quickly take it home for safe-keeping. For people like this, how would they fare under this new banking rules?”
Tobi Martins has a PoS stand at the entrance of RSA Street, close to Isawo. He told FIJ the policy would not favour his business.
“I read the news yesterday on social media and became affected. I thought of how this would reduce my business patronage and even inconvenient some customers who come here to withdraw large sums,” he said.
“However, I think they have their reasons and we too will find a way to accommodate the new reality.”
IT COULD KILL OUR BUSINESS
Agbaje Mary, an indigene of Osun State, said she was not aware of the development.
“I didn’t know anything about this policy until you told me. It is not going to affect my business positively. I’m an admission seeker and I started this business to make myself productive while hoping to go get an admission,” she explained.
“What this means to me is that I may end up closing this business by the time my customer base diminishes as a result of this policy. I remember I started with ₦10,000 a year ago and the capital has multiplied now. In a day, I could trade with ₦200,000 and even more.
“But now, if I cannot withdraw more than ₦50,000 for my business over the counter in a day, the implication is that my business could die gradually.”
When this reporter approached Ajibola Janet for comments, she said she was not aware of such regulations. After reading out the letter to her, she also expressed her worry over the development, saying “it will definitely tell on our business”.
“Such policy is unfair. Our business is cash-dependent and limiting how much people withdraw daily and how much we also can withdraw to use for business, will bring severe impacts on our operations,” he said.
“At any rate, this is not my only line of business. I will rather concentrate my attention on other lines for my survival and follow the trend.”
As this reporter approached Adebisi Adejumoh and Mosun Akanji, what came to their minds was that he wanted to withdraw money. Upon initiating a conversation with them, they realised his purpose was entirely different.
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Adejumoh said, “This policy is too harsh. People withdraw various amounts from me daily. Sometimes, some people come here to withdraw ₦100,000 at once.”
“The higher the amount an individual withdraws at a go, the higher my own charges. So, if it now becomes impossible for one person to withdraw above ₦20,000 in a day, I am confused, as we would be making adequate profits and receive my pay at the end of the month from my employer.”
On her own part, Akanji dismissed the policy as untrue. She said it was doubtful the apex bank would release such regulations when POS business had kept many productive.
“I don’t want to believe what you are saying is true. Why will they (CBN) pronounce a policy like that? It does not have human face. Looking at the number of people in this business, there may be a problem if the policy becomes effective and people can no longer make ends meet,” Akanji explained to FIJ.
At another shop on a one-storey building situated at Isawo junction, a man who identified as Emmanuel Houston, told FIJ that the policy would affect everybody to different extents.
According to Houston, POS machines have created jobs for thousands of Nigerians and ensured relative peace in some communities.
“In Isawo alone,” Houston said, “unless there is an official register of POS terminals here, you might not be able to count the number of people doing the business.
“Some people don’t take it as their full line of business while some do not have any other business. I believe the regulations have the potential to bite everybody regardless.”
With the new CBN regulations, ATMs will only dispense ₦200 notes and below.
The revised cash withdrawal limits contained in a letter with reference number BSD/DIR/PUB/LAB/015/069 becomes effective on January 9, 2023.
Business
Release Nigerian traders’ data to EFCC, court orders Binance
Release Nigerian traders data to EFCC, court orders Binance
A Federal High Court in Abuja has ordered Binance Holdings Limited, a cryptocurrency exchange platform, to furnish the Economic and Financial Crimes Commission with the comprehensive data of all persons from Nigeria trading on its platform.
Justice Emeka Nwite granted the interim order after ruling on the ex-parte motion moved by the EFCC’s lawyer, Ekele Iheanacho.
This was granted to enable the anti-graft agency to unravel the alleged money laundering and terrorism financing on Binance.
The ex-parte motion was brought pursuant to Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004 and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended) and the inherent powers of the court.
An operative of the EFCC, Hamma Bello, in an affidavit he deposed to, said the matter was of utmost urgent public interest.
He said the data provided would enable the commission to accomplish its investigation activities.
He said it was in the interest of justice to grant the application as refusal of the request would largely hamper the commission’s investigation.
He stated, “That the team uncovered users who have been using the platform for price discovery, confirmation and market manipulation which has caused tremendous distortions in the market, resulting in the naira losing its values against other currencies.
“That the damage the platform has caused was clearly explained to the operators of the platform and they were requested to delist the Naira and avail the ONSA on the activities of the Nigerians on their platform,”
He said the information availed to the team by Binance shows that the total trading volume from Nigeria in 2023 alone stood at $21.6 billion.
Binance is a cryptocurrency exchange that lists more than 350 cryptocurrencies globally.
Railway
UK firm to build PH-Enugu-Abuja standard rail line – FG
UK firm to build PH-Enugu-Abuja standard rail line – FG
The Federal Government has signed a Memorandum of Understanding with Messrs MPH Rail Development Limited, a United Kingdom company for the construction of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line.
The project when completed will be operated under a public-private partnership framework.
These details are contained in a statement issued by the Federal Ministry of Transportation and published on its website.
Under the MoU, the UK firm will manage the design, construction, commissioning, operation and eventually transfer to the Nigerian Railway Corporation.
The ministry stated that the MoU signing followed the approval of the Outline Business Case and the issuance of a compliance certificate by the Infrastructure, Concession, and Regulatory Commission.
This clearance allows Messrs MPH Rail Development (UK) Limited to focus on assembling the necessary documents for the Federal Executive Council (FEC) approval to proceed with the project.
Some of the essential documents for advancing this initiative are listed as a comprehensive feasibility study report, a full Business Case Study, an Environmental and Social Impact Assessment, the production of a Resettlement Action Plan, and the design of a Financial Model to implement the project.
This would ensure transfer of the line to the Federal Government under a PPP arrangement without incurring loans or debts for the Nigerian government or its agencies.
At the MoU signing ceremony, Alkali pledged the ministry’s support for the successful implementation of the project.
He emphasized the importance of diligent preparation and submission of all requisite documents to expedite FEC’s approval.
The statement read in part, “As part of the initiative to consolidate the ongoing railway modernisation projects consistent with the Renewed Hope Agenda of Presidential Bola Ahmed Tinubu administration, the Minister of Transportation, Senator Saidu Ahmed Alkali, has executed a Memorandum of Understanding on behalf of the Federal Ministry of Transportation with Messrs MPH Rail Development (UK) Limited to enable the company to carry out the design, construction, commissioning, operation and transfer of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line on Public – Private Partnership basis.”
Business
No approvals from FEC for borrowing through eurobond, says DMO
No approvals from FEC for borrowing through eurobond, says DMO
The Debt Management Office (DMO) says it has not secured approval of the Federal Executive Council for the appointment of advisers and eurobond issuance.
The Federal Government could raise as much as $1 billion in external borrowing in 2024 through this method to meet its spending needs.
On March 13, there were reports Nigeria had hired investment banks to seek advice on its first eurobond issue since 2022.
But the DMO in a statement on Friday said it had not appointed transaction advisers.
“The appointment of Transaction Advisers by the DMO is done in accordance with the provisions of the Public Procurement Act, 2007 and is subject to the approval of the Federal Executive Council (FEC),” DMO said.
“Also, the Issuance of Eurobonds by the Federal Government of Nigeria in the International Capital Market is subject to the approval of the FEC and receipt of the Resolution of the National Assembly (NASS) in accordance with the provisions of the Fiscal Responsibilities Act, 2007 and Debt Management Office (Establishment, Etc.) Act, 2003.
“Currently, the DMO has not received the requisite approvals from the FEC and Resolution of the NASS for any Eurobond Issuance.”
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