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BREAKING: NASS Proposes 21-Year Imprisonment For Breach Of CBN Act
JomogNews Nigeria reports that the Nigerian Senate has introduced a bill to amend the Central Bank of Nigeria (CBN) Act of 2007, proposing a 21-year imprisonment penalty for breaches of the CBN Act limit on ways and means advances.
This proposed legislation, spearheaded by Senator Mukhail Adetokunbo Abiru ( Lagos East), aims to significantly increase the penalties for naira abuse and enhance the CBN’s ability to fulfil its primary objectives.
The bill, which is entitled ‘A Bill for an Act to Amend the Central Bank of Nigeria Act No. 7 of 2007’, with a copy of the amendments seen by NewsOnline Nigeria, overhauls Section 38 of the Principal Act by introducing stringent measures to regulate temporary advances granted by the CBN to the Federal Government.
According to the amendment bill, any individual or group found guilty of violating the provisions of Section 38 will be required to refund the amount exceeding the set limits and will face imprisonment for a minimum period of 21 years without the option of a fine.
It read: “Any person or group of persons who breaches or is involved in the breach of the provision of this section 38 shall be guilty of an offence and be liable to refund such amount that exceeds the limits set in this section and shall also be liable to imprisonment for a minimum period of 21 years with no option of fine.”
This amendment comes at a time when a former CBN governor, Godwin Emefiele, whose tenure is known for breaching the CBN Act limit, is battling several court cases from the Economic and Financial Crimes Commission (EFCC).
The Senate is also probing the N10tn expended on the Anchor Borrowers Scheme, the $2.4bn forex transaction out of the $7bn obligation made for that purpose as well as other intervention programmes.
Limits on advances
The amendment bill states that the total amount of advances should not exceed 10% of the Federal Government’s actual revenue from the previous three years, excluding proceeds from asset sales.
This is a 100% increase from the 5% of the previous year’s revenue in the CBN Act of 2007. It is also lower than the 15% earlier proposed by the Ninth Senate.
Also, the amendment expanded the period from just the previous year to the previous three years, giving the Federal Government more borrowing space from the CBN.
Interest rates
The amendment bill specifies that temporary advances to cover budget revenue deficiencies should be granted at interest rates determined by the CBN in collaboration with the Coordinating Committee for Monetary and Fiscal Policies.
The interest rate must not be lower than the average Monetary Policy Rate (MPR) of the preceding 12 months.
The bill read: “Notwithstanding the provisions of section 34 (d) of this Act, the Bank may grant temporary advances to the Federal Government in respect of temporary deficiency of budget revenue at such rates of interest as the Bank may determine; provided such rate shall be determined with the Coordinating Committee for Monetary and Fiscal Policies and shall not in any case be below the average MPR for the preceding 12 months.
The total amount of such advances outstanding shall not at any time exceed ten percent of the previous year’s actual revenue of the Federal Government in the preceding three years excluding proceeds from assets sale.”
Repayment terms
The amendment bill states that advances must be repaid within 12 months from the date they are granted. If not repaid within this period, the interest rate increases by 10%.
Furthermore, no further advances can be made until outstanding amounts are fully repaid. Importantly, repayments cannot take the form of promissory notes or any securities underwritten by the bank.
The document read: “All Advances made pursuant to this section shall be repaid –
“(a) as soon as possible and shall in any event be repayable at the end of twelve months after the advance date and if such advances remain unpaid at the end of the year the interest rate payable shall increase by ten percent, the power of the Bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid and any such outstanding amount shall be held against the proceed of the sale of government asset; and
“(b) in such form as the Bank may determine; provided that no repayment shall take the form of a promissory note or such other promise to pay at a future date or securitisation by way of issuance of treasury bills, bonds, certificates or other forms of security which is required to be underwritten by the Bank.”
Nigeria’s petroleum marketers have asked Dangote Refinery to unveil the price of its Premium Motor Spirit (Petrol) to Nigerians.
The President of the Products Retail Outlets Owners Association, Billy Gillis-Harry and the President of the Independent Petroleum Marketers Association of Nigeria, IPMAN Abubakar Maigandi disclosed this to DAILY POST in separate interviews on Thursday.
The petroleum marketers were reacting to a statement by the Vice President of Dangote Industries Limited, Devakumar Edwin that local marketers were boycotting Dangote Refinery petrol for imported ones despite its lower prices.
However, Gillis-Harry explained that marketers have yet to know the price of Dangote Refinery’s petrol which they claim has lower prices than imported ones.
According to him, petroleum marketers in Nigeria are willing to patronize Dangote Refinery Petrol based on a fair price.
“Why don’t Dangote Refinery give us a price list of what his price is? They cannot tell the price of Dangote Refinery’s PMS which they claim is cheaper than imported petrol. What is the price of DRL petrol?
“How come they are saying marketers are boycotting their petrol? We don’t know how much Dangote is selling its petrol.
“We are willing to partner with him but we partner on the basis that we would be able to sell with a human face”, he said.
On his part, Madigan said that local marketers can’t boycott Dangote Refinery’s petrol as claimed by Edwin.
He stressed that oil marketers were yet to know the price of Dangote Refinery’s petrol.
According to him, petroleum marketers are ready to patronize Dangote Refinery petrol provided the price is not more than the price they are currently buying
“We don’t know the price of Dangote Refinery’s Petrol. We are ready to buy Petrol from Dangote Refinery in any condition provided the price is not more than the price we are getting from other places”, he said.
He added that marketers buy Petrol at various prices depending on location.
Recall that the president of Dangote Group, Aliko Dangote, while announcing the rollout of his petrol in the first week of September said that the price will be determined by the Federal Executive Council headed by President Bola Ahmed Tinubu.
Polaris Bank has been inducted a premium member of the prestigious Nigeria-British Chamber of Commerce (NBCC), marking another milestone in the Bank’s journey towards enhancing profitable trade between businesses in Nigeria and promoting global commercial partnerships with businesses in United Kingdom.
The induction ceremony which took place recently in Lagos with few other enterprises has swelled current membership of the Chamber representing a broad sectoral spectrum of top players operating in the banking; consulting; education, energy, pharmaceuticals, oil & Gas, Trading, health, manufacturing companies, among many others.
The Managing Director/CEO of Polaris Bank, Kayode Lawal speaking at the induction expressed gratitude to the Chamber for the recognition and highlighted Polaris Bank’s commitment to “leveraging this platform to drive sustainable economic development and deeper engagement with stakeholders.”
“Distinguished guests, members of the Nigeria-British Chamber of Commerce, and esteemed colleagues, it is truly an honour to accept this induction, on behalf of Polaris Bank. Being part of this esteemed Chamber is a significant milestone for us, as it aligns with our vision to build stronger partnerships and contribute meaningfully to the growth of trade and investment between businesses in Nigeria and the UK.”
He further added that Polaris Bank is committed to using its membership of the NBCC to exchange innovative ideas and provide long-term and mutually beneficial relationships that promote growth of businesses in Nigeria and beyond.
“We are available for business and ready to work with stakeholders to ensure impactful and a win-win collaboration,” Mr. Lawal reiterated.
The Nigeria-British Chamber of Commerce continues to play a critical role in promoting trade relations and investment between Nigeria and the UK, and Polaris Bank’s induction reflects the Bank’s strategic focus on contributing to these bilateral efforts.
Polaris Bank was adjudged Nigeria’s Digital Bank of the Year in 2023, 2022 and 2021 and MSME Bank of the Year 2022 and 2023 in Business Day’s Banks and Other Financial Institutions (BAFI)
Awards.
Photo caption:
From right: Mr. Kayode Lawal, Managing Director/CEO of Polaris Bank, receiving on behalf of the bank, Premium Membership Certificate into Nigerian-British Chamber of Commerce (NBCC) from Mr. Kayode Falowo, NBCC’s Ex-President/Chairman, Greenwich Merchant Bank in Lagos recently.
A seven-day curfew has been imposed in six local government areas of Osun State following the death of Oba Adekunle Gabriel Aromolaran, the Owa Obokun of Ijesa land.
The 87-year-old monarch passed away on Wednesday evening after a brief illness, ending his 42-year reign.
The affected local government areas, which constitute Ijesa land are Ilesa East, Ilesa West, Atakunmosa East, Atakunmosa West, Ori-Ade, and Obokun.
The Ogboni of Ipole-Ijesa, Oba Oyebade Samson Kehinde Oyeleye, speaking on behalf of the Owa-in-Council and kingmakers, announced that the curfew will run from 10 pm to 6 am daily, effective Thursday
Additionally, all markets in the affected areas will be closed for three days.
Governor Ademola Adeleke, through his spokesperson Olawale Rasheed, expressed his condolences over the monarch’s death.
He described the late Oba as “a father figure, a pillar of support, and a teacher” committed to the development of Ijesa land and Osun State.
Adeleke added, “Kabiyesi was a deeply selfless father, who took no prisoners when it came to matters of development and wellbeing of the people. He was a friend of good governance, no matter the colour or race.
“The last time I was with him was the flag off of the dualisation of Brewery – Palace road. I am glad our late erudite scholar witnessed a new phase of development for Ijeshaland.”
Former Governor Adegboyega Oyetola, now Minister of Marine and Blue Economy, praised the late monarch’s contributions to the state and nation.
“Kabiesi was known for brilliance, bravery and bluntness as these virtues, exhibited throughout his reign, culminated to many successes recorded not only in Ijesaland but in the state and the country as a whole.
“No doubt, the departed Aromolaran was an epitome of culture, character, integrity and dignity. Being the symbol of Ijesas, he spent all his entire life to serve God and humanity. His over 42 years reign indeed witnessed a myriad of developments cutting across different aspects of life,” said Oyetola.
Prince Dotun Babayemi, a leader of the All Progressives Congress (APC) in Osun West Senatorial District, described the monarch’s passing as a big loss.
“Late Oba Gabriel Adekunle Aromolaran was a highly principled traditional ruler whose body of knowledge and reign, will never be forgotten in our history.
“He occupied his space robustly and contributed immensely to the growth and development of our dear state, Osun and beyond,” stated Babayemi.
Governor Ademola AdelekeOba Adekunle Gabriel Aromolaran IIOba Oyebade Samson Kehinde Oyeleye
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