₦airaland Forum

UBA complies, others ask CBN to sell them dollars to return NNPC/NLNG funds
More sanctions loom over transfer of FX free funds
Bolaji Adebiyi in Abuja and Obinna Chima in Lagos
LIST OF BANKS YET TO return NNPC/nlng FUNDS
United Bank for Africa Plc
$530m
First Bank of Nigeria Ltd
$469m
Diamond Bank Plc
$287m
Sterling Bank Plc
$269m
Skye Bank Plc
$221m
Fidelity Bank Plc
$209m
Keystone Bank Ltd
$139m
First City Monument Bank Ltd
$125m
Heritage Bank Ltd
$85.5m
Total
$2.334bn
The Central Bank of Nigeria (CBN) on Tuesday barred nine banks from participating in the foreign exchange market for failing to return a total of $2.334 billion of Nigerian National Petroleum Corporation (NNPC)/Nigerian Liquefied Natural Gas (NLNG) Company dollar deposits to the federal government’s Treasury Single Account (TSA) domiciled with the central bank, as directed by the presidency last year.

In addition to suspending them from the FX market, the affected banks, according to industry sources, still face the prospect of further financial fines, which shall be communicated to them by the CBN in the coming days, THISDAY learnt.

As exclusively reported by THISDAY tuesday afternoon, the affected banks, whose suspension would remain in force until they remit all the funds to the TSA, are the United Bank for Africa (UBA) Plc – $530 million, First Bank of Nigeria (FBN) Ltd. – $469 million, Diamond Bank Plc – $287 million, Sterling Bank Plc – $269 million, Skye Bank Plc -$221 million, Fidelity Bank Plc – $209 million, Keystone Bank Ltd. – $139 million, First City Monument Bank (FCMB) Ltd. – $125 million, and Heritage Bank Limited – $85.5 million.However, the executives of the affected banks have appealed the sanction by the central bank, explaining that the remittances were delayed by the dollar illiquidity in the system and the CBN should sell them the dollars by debiting their accounts so that the respective amounts can be returned to the TSA.

UBA, nonetheless, not wanting to take any chances, immediately complied with the CBN directive by transferring the NNPC/NLNG dollar deposits domiciled with it to the TSA.

UBA, sources revealed, was able to achieve this yesterday by asking the CBN to net off the federal government’s indebtedness to the bank which exceeded $450 million, thus enabling the bank to return the balance last night.

However, a CBN source said they were yet to get confirmation of UBA’s transfer, perhaps owing to the time it was sent, but would confirm the payment today.

Since the September 15, 2015 deadline set by the federal government for all accounts of ministries, departments and agencies (MDAs) with commercial banks to be closed and remitted to the TSA, the central bank has imposed hefty fines on erring banks for non-compliance.

First to face the ire of the central bank last November were FirstBank and UBA, which were respectively forced to cough up N1,877,409,905.12 and N2,942,189,651.45. The penalties represented five per cent of the unremitted funds.

Two weeks later, Skye Bank Plc came under the regulator’s hammer, when it was hit with a N4 billion fine, representing 10 per cent of the funds belonging to MDAs.
Other banks that paid fines for TSA infractions last year were Zenith Bank Plc (N60.1m), Guaranty Trust Bank Plc (N60.05m) and Sterling Bank (N13m).

Banks React

Reacting to the latest sanction, UBA in a terse statement last night said it had completely remitted all NNPC/NLNG funds to the TSA.
A statement by the bank’s spokesman, Mr. Charles Aigbe, said: “Our attention has been drawn to report of the ban of UBA from the foreign exchange market by the CBN over the non-remittance of NNPC/NLNG dollar deposits.

“We wish to state very categorically that UBA has completely remitted all NNPC/NLNG dollar deposits.
“We thank all our numerous customers, business partners and other stakeholders who have reached out to us on account of this report.”

UBA was however silent on when exactly it returned all dollar deposits belonging to NNPC/NLNG to the CBN.
Also, in their reactions, the Head of Corporate Communications at FCMB, Mr. Diran Olojo, and his counterpart at Skye Bank, Mr. Nduneche Ezurike, assured customers and stakeholders of the banks that the matter would be resolved.

Similarly, the spokesperson of Diamond Bank, Mrs. Ayona Trimmel, assured the bank’s customers that the matter was being resolved.

She explained that since October last year, Diamond Bank had refunded $700 million to the TSA, adding that full remittances of the balance of $287 million had been hampered by the dollar scarcity in the financial system.

“Diamond Bank is fully in a position to pay the naira equivalent and will comply with the CBN directive on the outstanding dollar amount promptly,” she said.

A senior executive officer of one of the affected banks, who spoke with THISDAY on the condition of anonymity, further explained that the failure of the financial institutions to comply was as a result of the on-going restructuring of oil and gas loans.

It was gathered that there was a meeting between the CBN and the affected banks last night on how to resolve the matter.

An official of Fidelity Bank also told THISDAY that his bank had been complying with a repayment schedule agreed with NNPC.
“We got a repayment schedule which we have been meeting. Our original indebtedness was about $500 million and it was only in June we were unable to make a refund based on the schedule due to the dollar scarcity,” he explained.

CEOs Appeal

However, two bank chief executives who spoke to THISDAY last night expressed concern over the decision to suspend the banks from the officialal FX market, cautioning that this could have unexpected consequences on the financial system and increase pressure on the parallel market, where the nine banks would be forced to turn to source their dollar requirements.

One bank CEO, who preferred not to be named, said: “While we are not fighting the government in its wisdom for setting up the TSA, but we should be given time to refund the outstanding amounts, because most of these funds were loaned to the power sector during the privatisation programme, as well as the oil and gas sector.

“For one, most of the power companies are not in a position to repay their loans because of the Niger Delta crisis, the non-availability of gas, transmission problems, and the huge indebtedness of government MDAs to the electricity distribution companies (DISCOs).

“Also, several of the oil and gas sector loans were given to the international oil companies (IOCs) to cover the gap arising from the federal government’s failure to pay its cash call arrears.
“So if the government can fund its cash calls obligations, the IOCs will be able to pay us back and we in turn can refund to the TSA.”

Another CEO of one of the affected banks said the bank would need more time to readjust their risk assets, adding: “We all have the naira to pay back but due to dollar illiquidity, it will be hard to do so immediately.”

He suggested that the CBN provides the nine banks with the dollars to pay back, saying: “If the CBN gives us the dollars tomorrow, we will pay.”

One market analyst also wondered why the same CBN which forced the states to restructure their loans to 20-year tenures has now turned round to ask the banks to repay the dollar deposits in 24 hours.

“If the CBN could help the states restructure their loans, the banks should also be given the same chance to do so to avoid any unintended consequences,” he said.

He said that it also did not make sense for the CBN to insist that the NNPC/NLNG dollar deposits be refunded because they would have to be domiciled with the JP Morgan overseas, where all of Nigeria’s foreign reserves and dollar deposits are domiciled.

“I do not understand the benefit of taking dollars from Nigerian banks and sending them abroad to the CBN’s account with JP Morgan. This will be counterproductive because under Chukwuma Soludo’s headship of the central bank, he introduced a policy that enabled some of the dollar deposits belonging to MDAs to be kept with Nigerian banks.

“This was done to grow their balance sheets, enable them to meet their foreign obligations and fund Letters of Credit (LCs), and this policy was continued by Sanusi.
“So by asking the banks to refund the dollar deposits to the TSA, the government must understand that the CBN does not domicile dollars and will have to export it to JP Morgan abroad, effectively strengthening those banks and weakening Nigerian banks,” he said.

In their review of the matter, Lagos-based CSL Stockbrokers Limited in a note yesterday said that most of the banks they spoke to blamed their inability to comply on the tight dollar supply in the system.

“Judging from a similar event last year when three banks (FBN, Skye and UBA) were fined for non-compliance with TSA, we believe the CBN may impose various fines on these banks as a disciplinary action.
“Of greater concern to us is the ability of these banks to remit these funds given the illiquidity in the market,” CSL added.

Furthermore, the investment firm pointed out that the inability to remit these funds would mean staying away from all FX transactions for an extended period, adding that the inability to participate in all FX transactions, among many other implications, would mean the loss of FX trading income for the period of the suspension; inability to carry out trade services as Letters of Credit (LCs) cannot be opened and this also implies loss of fee and commission income from such transactions; and the potential loss of customers.

UK-based Nigerian lawyer, Mr. Bennett Igbani, whose MTN line was hacked into by an unidentified person, has slammed a N200 million suit on MTN Nigeria Communications Limited.


In an amended statement of claim filed on Mr. Igbani's behalf before a Federal High Court in Lagos by Lagos lawyer Festus Keyamo, the UK-based lawyer claimed that he had been using his SIM card with the number 08067251116 for over eight years. He also claimed that during the compulsory card registration exercise mandated by the Nigerian Communications Commission (NCC), he personally registered his SIM card with MTN Nigeria Communications Limited and had been using the same exclusively without any interference from anybody until October 4, 2014.

Mr. Igbani, a PhD law student in the United Kingdom, said he roamed his line when he traveled to where he is studying. But three days after his arriving the UK, he added, the line became inoperative. A few days later, he said he observed that his e-mail address was being accessed from Nigeria, as his e-mail account had been hacked into by a third party using his MTN Number.

Mr. Igbani alleged further that his account officer at Sterling Bank Plc called to inform him that one Mrs. Nora, claiming to be his younger sister, called her with his MTN number and requested that the sum of N5 million from his bank account be released to them for because Mr. Igbani required urgent medical attention overseas, as he was gravely ill and on admission in a hospital.

The lawyer, however, stated that he was neither ill nor has a sister named Nora. He added that he was scared, as his MTN line is linked to all his six bank accounts, as well as his e-mail account and social media accounts.

Mr. Igbani averred further that after the attempted fraud on his account, he petitioned the Nigerian Police, stating that his number was reclaimed by a third party through MTN and the third party had access to his PhD thesis and deleted vital documents, thereby causing him serious setback in his academic pursuit.

Upon his return to Nigeria, he went to the MTN office in Lagos and laid a complaint. He said it was confirmed that his MTN line was reclaimed by one Mr. Ndubisi Daniel on October 7, 2014. Subsequently, he requested for the particulars of the person that reclaimed his number but the communications company refused to disclose same.

The refusal compelled him to instruct his lawyer, Mr. Keyamo, to write to MTN, stating that the action of the company was fraudulent.

Mr. Igbani similarly averred that he suffered enormous damages, ranging from being kept incommunicado for over five months to loss of business, psychological stress, financial loss, extraction of vital information and infringement on his privacy.

For these, Mr. Igbani is seeking the sum of N200 million as damages.

He is also seeking an order of the court mandating the MTN to return his number to him and restrain the company from further tampering with his with his number.

The case has been adjourned until September 23 for hearing.

Were is d pix or u want me to waste my mb in clicking ur blog

He is showing his children around d world n depriving pple in his constituency their privileges...Nigeria polithieftcian God is watching

South south zonal HQ

#Diezani Refunds 90 Billion Dollar CNN Confirmed

I start to imagine what a normal human being would ever need 13 Billion British Pounds that’s 27 trillions of Naira for in this limited world, which if divided according to the equivocal population of Nigerians 170,000,000 people each person will get over N158 millions.


I wonder if former President GEJ could imagine that only one out of his ex-Ministers could steal such a stupendous amount under his administration without his knowledge.


Wonders shall never end! In reference to the CNN report that the former Minister has made a refund of $90B already, how much is Dangote worth?

As at today Dangote is worth $14.7B and the 67th in the world while Bill Gates was the 2nd with $ 79.2 on the Forbes list.

Diezani is simply a wonder. Old pensioners are dying of hunger daily, Insurgency is consuming lives of innocent Nigerians, workers are no longer getting their salaries as at when due, Government can no longer build infrastructures, road all over the country are in complete bad shape and only one woman got away with this kind of money.


Nigeria is a wonder, while Diezani is a SHAME


http://m.thenigerianvoice.com/news/221309/diezani-refunds-90-billion-dollar-cnn-confirmed.html

South south zonal HQ

funmijoyb:
That's why d yorubas of d oyo empire gave them d name IGBO which translated to bush people.

Yoruba pple with tribalism ... no wonder dey alway feel vry inferior wen they re with other tribe

funmijoyb:
That's why d yorubas of d oyo empire gave them d name IGBO which translated to bush people.

Yoruba pple with tribalism ... no wonder dey alway feel vry inferior wen they re with other tribe

South south zonal HQ

From NANC zonal HQ

I came here to check names.....names checker association...south south zonal HQ

God will punish polithieftcian in dis contry making dia pple look like slave....

PRYCE:
Detained illegally you mean?

Shut up ur gutter mouth u don't read d write upup

Congrats lanicky

Ojestas:
couples have met on FB, twitter, Instagram. . What's happening NL? We need testimonies


The only instance i v seen here is "Pictures of A male Nairalander who met a female Nairalander today" At d end, nothing to show.

And "meet my GF, also a Nairalander" And still dem never propose.

NL girls, na only lalasticlala n Seun dem wan marry . . Una go wait tire.




Married couples rather come on here to seek advice on their "almost" broken homes.



Pls, start replying PMs. . pls

Snd me pm n c if I wont reply our two fit start from dia n end up like demdem

Bossforeva:
Jim Reeves... We thank thee!

Lolzzzz

I vote
MimzyMimzy


Cc.NLjega

gidjah:
A truely happy woman with joyous home won't post this.definitely a sad lady with bad experience.

Hmmmmm!!!

I will say to some extent it is the KEY

Is financially independent the KEY

johnemeka:
Just want to register here.





The pix is niece.

na only niece nephew join am

op dis is nothing compared to wat student goes tru in uyo d capital city...yes in UYO d capital city of akwa ibom in d class rooms no ceilings with cracks walls. wen I ve tyme I will go arund d govenment skuls in uyo take pics of dem n post on NL. d bulding dat is a bit ok was built by UBE or NDDC

op dis is nothing compared to wat student goes tru in uyo d capital city...yes in UYO d capital city of akwa ibom d class rooms no ceilings with cracks walls. wen I ve tyme I will goes arund d govenment skuls in uyo take pics of dem n post on NL. d bulding dat is a bit ok was built by UBE or NDDC

Pls will the strike affect NYSC batch A stream 2