National News

FG, States, LGs Go Full Cashless March 1

Published

2 years ago

January 6, 2023

FG, States, LGs Go Full Cashless March 1

Worried by the inflationary consequences of huge public sector cash withdrawals on the nation’s economy, the Nigerian Financial and Intelligence Unit (NFIU), yesterday, outlawed cash withdrawals from all government accounts effective March 1, 2023 warning that defaulters risk three-year jail term.

The NFIU, declared that such transactions would now be done electronically in line with the Central Bank of Nigeria (CBN) monetary policy.

It said defaulters who fail to heed the cash restriction order on public accounts risks collaborative investigation by the Nigeria Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices Commission (ICPC).

Director and Chief Executive Officer, NFIU, Modibbo Tukur, who confirmed the latest development at a press briefing, at the Unit’s office in Abuja, said defaulters risk spending three years behind bars.

He said “The NFIU had told banks and government agencies at all levels to go fully digital by moving online, as all transactions involving public money must be routed through the banks for the purpose of accountability and transparency.

“This is not reversible as we are only enforcing the law. As far as we are concerned, Nigeria will become a full non-cash economy by March 1, 2023 this year.

As a consequence, any government official that withdraws even one naira cash from any public account from March 1 will be investigated and prosecuted in collaboration with relevant agencies like EFCC, ICPC and the NPF,” he said.

Tukur clarified that under the guidelines, only the President can give a waiver for any cash above the approved daily threshold to be withdrawn for urgent or emergency reasons.

He said despite the introduction of the cash withdrawal limits in the country, state governments withdraw a total of N701 billion cash above the N225 billion withdrawn by the Federal Government and N156 billion withdrawn by the local governments in the country, bringing total public sector cash withdrawals between 2015 to date to N1.082trillion.

“With some states withdrawing up to N24 billion and then we also discovered that the Federal Government withdrew in cash up to N225 billion while the local governments withdrew up to N156 billion.

“So if we are to apply the law here, all the public servants involved in this withdraws are entitled to three years imprisonment. That’s what the law said,” he said.

The NFIU therefore directed federal, state and local governments in the country to put necessary measures in place to ensure the smooth operationalisation of the new policy.

He advised the different tiers of government in particular, to deploy technology and train their staff to be able to apply the new policy from the stipulated date.

Modibbo said: “With the implementation of this guideline, Nigeria has been taken into a non-cash economy with effect from March 1, 2023.”

Continuing, he said: “The rate of withdrawals above the threshold from public accounts has been alarming, over N701 billion has been withdrawn in cash from 2015 till date. So you are all aware of the inflation in the economy, public servants traveling ,this and that, so the mark of withdrawing above the threshold is becoming very frequent.

“For government exigencies, only the President has the power to grant any waiver to any government official considering the importance of the situation; either for national security, health, or other important reasons.”

“From the first of March 2023. If there is any cash withdrawal, it is going to trigger off money laundering investigation in either EFCC ICPC, the Nigerian police, or all the law enforcement agencies, depending on the relevance of the withdrawal.

“So it’s also understood, the cash in the system is limited. But with this guideline, we expect that cash withdrawal from the system will go down by about N1 trillion Naira out of the N3 trillion cash that is in circulation on a weekly basis now.”

In his reaction, Frank Onyebu, Chairman, MAN, Apapa Branch, said: “This measure is laudable, but I think it’s still a tall order based on so many militating factors, chief of which is infrastructural deficiency. We cannot be talking about going totally cashless when we still have problems with internet penetration.

Chairman, SMEs Group of the Lagos Chamber of Commerce and Industry (LCCI), Daniel Dickson-Okezie said it was a welcome development.

“The more cashless we go, whether at governmental , organisational or individual levels, the better for the economy and society.

The issue of cashless economy was mooted for the first time during the Olusegun Obasanjo administration. The policy is acceptable because it will check crime , money laundering, corruption in government, private and public sectors.

Businesses don’t thrive in a corrupt society, investors don’t want to invest in a corrupt environment and corruption affects government too. So cashless economy will tame corruption,” he said.

He however tasked the government to follow it up by improving information technology infrastructure saying “The whole thing is based on ICT and it is important that we are able to make payments seamlessly.”

An economist, Dr Nathan Owhor, lauded the directive by NFIU on MDAs to ensure that all receipts and payments on government transactions from March 2023 are cashless is good for the economy.

“The leakage in the MDAs are huge and not good enough for the economy. The Chief Executives in the MDAs must learn how to be accountable and show greater financial discipline.

Some of them who claim to have strong godfathers are actually reckless with government finances and they enjoy protection. This protection is usually sustained by huge cash rewards which is a drain on the economy.

“The new cashless policy for the MDAs will therefore achieve four broad objectives amongst others. In the first instance, which is perhaps key is the ability to track government receipts and payments.

Secondly, it has the capacity to reduce the high level of waste and mismanagement in the MDAs. It will also build trust in the domestic economy because of the level of transparency it will engender.

All of these possibilities in the final analysis will make more funds available for development projects,” he said.

FG, States, LGs Go Full Cashless March 1

National News

Ogidigben $20 billion Gas Project: Nigeria Receives Investment Commitment from Chinese Firm

Published

15 hours ago

January 22, 2025

Ochuwa Ibrahim

Ogidigben $20 billion Gas Project: Nigeria Receives Investment Commitment from Chinese Firm

By: Michael Mike

The federal government has received a commitment from a Chinese firm, China National Chemical Engineering International Corporation Ltd (CNCEC), to support the development of the $20 billion Ogidigben Gas Project in partnership with Nigerian stakeholders in a restructured funding partnership.

The commitment was given to the Director-General of the Nigeria-China Strategic Partnership (NCSP) Joseph Tegbe who is presently leading a team to China to market Nigeria and its opportunities for investment.

A press statement on Monday read that Tegbe held strategic sessions with renowned Economist and former World Bank Director Prof Justin Lin Yifu, who pledged support for the NCSP office in areas of policy implementation, reforms, and attraction of Chinese investments.

The Director General delegation was also hosted by China National Chemical Engineering International Corporation Ltd (CNCEC), whose President Li Zhenyi, expressed his company’s commitment to contributing to Nigeria’s economic growth through construction and industrialization specifically their strong desire to support the development of the $20 billion Ogidigben Gas Project in partnership with other Nigerian stakeholders in a restructured funding partnership.

The Director-General acknowledged CNCEC’s technical capabilities and their previous accomplishments; and also reiterated the bold and audacious support of President Bola Tinubu on the major developmental projects across Nigeria as national priority to fast track the nation’s industrialization.

Tegbe’s visit to China was as part of the Forum on China-Africa Cooperation (FOCAC) projects coordination, and investment drive, and he has continued to have strategic engagement with key Chinese stakeholders to deepen the bilateral cooperation. The visit aimed to review priority FOCAC projects, explore innovative funding options, and attract major Chinese investments into Nigeria.

In Beijing, the Director-General met with representatives from China EXIM Bank and China Development Bank to discuss accelerated delivery of priority projects. The delegation also visited the China Communications Construction Company (CCCC) Headquarters, where they toured a 2.5 million eggs-per-day production poultry farm, a visit to the firm aimed at assessing the feasibility of replicating similar projects in Nigeria using innovative funding models, such as the part contractor-financed, BOT, among others as recently adopted in other China financed projects.

During the visit, the delegation moved to Xinjiang where they visited TBEA, the number 1 electricity corporation in China and leading power transmission enterprise. They discussed status of their project and explored investment options and opportunities in mini and microgrid solutions to enhance Nigeria’s power sector.

The delegation’s next stop was at Shanghai where they made a courtesy call to the Nigeria Consulate in Shanghai, engaging in productive discussions about trade and investment opportunities in the region. These conversations focused on facilitating growth in key areas and exploring ways to enhance cooperation between the Consulate’s trade mission and the Director-General’s office.

The delegation thereafter visited the impressive Yangshan Deep-Water Port, also known as Shanghai Port. This massive port is currently the largest in the world, was constructed by China Harbor Engineering company, who also constructed the Lekki Deep Sea Port in Nigeria. The port
boasts an incredible capacity of 51 million twenty-foot equivalent units (TEUs). During their visit, the delegation had the opportunity to cross the remarkable 35-kilometre bridge, specifically designed for the evacuation of men and materials from the port. This bridge is a testament to China’s impressive engineering capabilities.

According to the statement, before leaving China, the delegation is expected to engage key players in Chinese economy in Shenzhen, and Guangzhou to facilitate and fast-track FOCAC project implementation through familiarization and feedback sessions with the relevant participating companies.

The statement added that “the ongoing visit is part of the Nigeria-China Strategic Partnership’s efforts to strengthen bilateral relations and promote economic cooperation between the two nations, an initiative that aligns with President Bola Tinubu’s vision for Nigeria’s economic growth and development, particularly in areas such as infrastructurb development, technology transfer, and job creation.

Ogidigben $20 billion Gas Project: Nigeria Receives Investment Commitment from Chinese Firm

National News

AT 2025 WEF, VP Shettima Markets Nigeria, Africa As Investment Destination

Published

17 hours ago

January 22, 2025

Ochuwa Ibrahim

AT 2025 WEF, VP Shettima Markets Nigeria, Africa As Investment Destination

** Says Africa Has Indeed Woken Up

By: Our Reporter

Vice President Kashim Shettima has said serious investors can now take unfettered advantage of Nigeria’s growing investment climate to tap from the limitless opportunities in the country and the African continent.

VP Shettima spoke on Tuesday during a forum titled, “Roadmap to Co-create Investment Opportunities for Africa’s Frontier Markets,” at the ongoing annual meeting of the 2025 World Economic Forum ( WEF) in Davos, Switzerland.

At the session which was co-chaired by Mirek Dusek, Managing Director of World Economic Forum, and chaired by Marie-Laure Akin Olugbade, Senior Vice President, African Development Bank (AFDB) group, discussions focused on the Humanitarian and Resilience Investing Roadmap for Africa.

He told the forum that the tales they hear about the country and the African continent as a whole are really not that of doom and gloom as being painted by doomsday proponents.

The Vice President noted that Nigeria is poised to invade the global business platform with modernisation and robust investments, assuring that President Bola Ahmed Tinubu, a seasoned chartered accountant, is working to make the nation an investment destination in Africa.

“For 20 years, I have been in the Nigerian banking industry. I was a general manager in Nigeria’s largest bank, Zenith Bank. I grew up in that ecosystem. The President himself is a seasoned chartered accountant. So, I believe that Nigeria is ready for business, Nigeria is ready to embrace the path of modernization with very robust investment,” he declared.

Acknowledging however that the nation may still have certain deficits, VP Shettima pointed out that Nigeria is looking up to the African Continental Free Trade Area (AfCFTA) to address the challenges.

He stated: “We are having a huge deficit but we are looking forward to the AfCFTA and that involves investing in infrastructure for instance the coastal highway from Calabar to Lagos is the largest single investment in Africa. We are building corridors to the North.

“We have the West African gas pipeline. We are thinking ahead of time akin to the Belt and Road Initiative. We are partnering with 14 African countries to invest in gas infrastructure down to Morocco.”

Senator Shettima insisted that Africa is not all about tales of doom and gloom, maintaining that the continent has woken up from its slumber.

Likening Napoleon Bonaparte’s opinion about China to the case of Africa, the VP said, “So, Your Excellencies, ladies and gentlemen, the stories you hear about Africa are not that of doom and gloom. From DRC to Somalia, South Africa, Egypt, Ethiopia, Ghana, and Cote d’Ivoire, Africa is waking up from its slumber.

“I remember what Napoleon Bonaparte said about China, he said “China is a sleeping giant but when she wakes up, she will rattle the world”. So, Africa has woken up and we will take our rightful place in the comity of nations because as I said earlier, the trajectory of global growth is facing Africa. We are the youngest continent.”

Also drawing a leaf from the late Nigerian head of state, Gen. Murtala Mohammed, VP Shettima said Africa has come of age and can no longer be treated like an adolescent.

“I want to quote Murtala Mohammed – a Nigerian military leader at an extraordinary summit of the OAU, about 50 years ago. He said “Africa has come of age, it is no longer under the orbit of any extra-continental power, and it shall no longer take orders from any country, however powerful,” he concluded.

Meanwhile, in a show of African leadership collaboration at the World Economic Forum in Davos, Nigeria’s Vice President, Senator Shettima, on Tuesday joined South African President, Cyril Ramaphosa, as special guest of honor at a high-level briefing, following his earlier participation in the Africa Investment Forum.

….VP Shettima, Botswana’s President Hold Talks

Meet WTO DG, Okonjo – Iweala

Similarly, Vice President Kashim Shettima and the President of Botswana, Duma Boko, on Tuesday held a bilateral meeting where areas of mutual interest between both countries were discussed.

The meeting, which took place on the sidelines of the World Economic Forum 2025 in Davos, Switzerland, is part of Nigeria’s commitment to fostering stronger intra-African relations and economic cooperation.

Both leaders emphasized the importance of leveraging their countries’ strengths to promote mutual growth and development.

The Vice President, who congratulated President Duma Boko on his election victory, called for deeper partnerships and collaborations between African nations, saying it is time Africa united and presented a common front on interests regarding the continent.

During the meeting, Vice President Shettima welcomed the Director General of the World Trade Organisation, Dr. Ngozi Okonjo-Iweala, introducing her to the Botswana President.

The Vice President commended Dr. Okonjo-Iweala’s exceptional achievements, describing her as one of Africa’s finest.

Other areas of interest discussed between the two leaders included trade, investment and strengthening of diplomatic ties.

AT 2025 WEF, VP Shettima Markets Nigeria, Africa As Investment Destination

National News

Niger Tanker Explosion: VP Shettima Expresses Dismay Over Loss Of Lives

Published

3 days ago

January 20, 2025

Ochuwa Ibrahim

Niger Tanker Explosion: VP Shettima Expresses Dismay Over Loss Of Lives

By: Our Reporter

Vice President Kashim Shettima has expressed dismay at the devastating tanker explosion that claimed several lives at Dikko Junction in Niger State.

He commiserated with families of the victims, assuring them of the federal government’s commitment to preventing future occurrences.

The Vice President extended his heartfelt condolences to the bereaved families, as well as the government and people of Niger State.

The Vice President’s message follows President Bola Ahmed Tinubu’s earlier directive for immediate medical assistance to survivors and the implementation of stricter safety protocols along major highways.

The incident, which occurred when a fuel-laden tanker en route from Kaduna to Gwagwalada overturned at Dikko Junction, has prompted the federal government to announce a comprehensive review of transportation safety measures.

The Preident has also tasked the National Orientation Agency with launching an immediate nationwide awareness campaign on the dangers of approaching accident scenes involving fuel tankers.

Niger Tanker Explosion: VP Shettima Expresses Dismay Over Loss Of Lives