Nigerian Newspapers
CBN: Toing and froing over polymer notes
The Central Bank of Nigeria (CBN), the country’s apex bank, has stirred another controversy with its proposed scrapping of polymer notes in favour of paper for some of the nation’s local currency, reports Bukola Afolabi
Moneymoon, no matter the exhilarating benefits, hardly lasts forever. This has been proved in the case of polymer notes, which was hitherto favoured by the Central Bank of Nigeria (CBN), the apex regulatory body, but now considered a bad choice.
Bombshell
Barely six years after the polymer notes were introduced with billions of naira committed to the project, the apex bank through one of its Deputy Governors, Mr. Tunde Lemo, announced that the bank will, by the middle of this year, begin the production of lower denomination notes in paper.
Lemo, made the disclosure at the recently held World Bank/International Monetary Fund (IMF) forum in Washington, United States.
“My plea is that Nigerians should exercise patience with us; it wasn’t the fault of the CBN; it was just because we had to go back to the drawing board to rethink ‘Project Cure’ in the light of the wish of the public that we should not go ahead with the N5000 notes and lower denomination,” Lemo began.
“We will correct that in the course of the year. Polymer certainly will be phased out. In fact, we are phasing out polymer. No new note is being printed in polymer now.
“So, part of ‘Project cure’ actually was to move away from polymer substrate to paper. Unfortunately, we had a push-back because of the issues around N5000 note and coins. The entire programme was put in abeyance, otherwise by now we should have stopped producing polymer.”
Expatiating, Lemo said that as a result of the monopoly of Securency in the production of polymer notes, the bank was always forced to pay whatever amount the firm charges; adding that there are also a lot of “environmental issues” surrounding the polymer notes.
“Securency is the only producer of polymer currency in the world and so the CBN has been resorting to single sorting for bank note, adding, “This, we think, is not good for the country. Even though the plan is to coin N5, N10 and N20, the N50 note will be converted to paper currency. However, if Nigerians show preference for retaining the N5, N10 and N20 in banknotes instead of coins, it shall no longer be in polymer,” he noted.
The destruction of banknotes made of polymer, Lemo stressed, “Has proved to be a challenge in Nigeria from an environmental perspective. Findings revealed that briquetting (destruction of unfit banknotes) of polymer is not always easy because it is made of polythene and emits substances that are not environmentally-friendly.”
Lemo also stated that another reason to do away with polymer notes was as a result of the scandal that involved Securency. This, according to him, casts doubt on the integrity of the Australian firm.
In the beginning…
The CBN then, under Professor Chukwuma Soludo, on February 28, 2007, launched the first polymer note, the N20, on a trial basis. In October 2008, the CBN obtained presidential approval to convert the other lower naira denominations, N5, N10, and N50, from paper to polymer notes.
In launching the new currencies, the Bank said in a statement that “printing the N20 note on polymer was a test case. The essence of the experiment was to determine the advantages and demerits of the polymer substrate and its acceptance by Nigerians.
Justifying the introduction of polymer, Mr. Abdullahi Mohammed, former spokesman of the apex bank, said then that the polymer note proved to be more economical than the paper notes, hence the change. “Research in the last two years has shown that polymer notes are more durable than the paper notes. In the long run, there is a 50% cut in costs when we use the polymer notes,” he said.
But about three years later in far away Australia, crack detectives began investigations on how some top Nigerian officials allegedly shared about N750 million bribe from an Australian polymer company, Securency, to secure the contract to supply the polymer notes to the Nigerian government.
Investigations had revealed that Securency paid out bribes to some Nigerian officials in order to win the contract which enabled the company to supply at least 1.9 billion pieces of polymer notes so far.
A report about possible misdemeanour by Securency, a joint venture company between the Reserve Bank of Australia (RBA) and Innovia Films, indicated that the money was paid between 2006 and 2008 to some CBN officials and other influential Nigerians using two UK-based businessmen, Benoy Berry and Michael Harvey as fronts.
The currency restructuring programme
Securency’s interests in the country started around the year 2006. Before the end of that year, the company had clinched a deal to print the polymer note as a result of the decision of CBN to carry out a Currency Restructuring Programme.
From the start
Securency produces the press ready polymer substrate, Guardian®, on which bank notes are printed. This breakthrough patent was first used in Australia in 1988. Since then, the Australian company has penetrated other countries, selling to them its patented product and urging a shift from the traditional paper money. The polymer note’s selling point is in its advertised toughness, security features, and resistance to soiling, thus, its durability.
In 20 years, Securency has succeeded in spreading to over 20 countries. According to the Reserve Bank of Australia, the company thrives on foreign contracts and claims that ‘90% of Securency’s revenue comes from exports’.
Curiously, almost all these countries have been classified by the Australian Foreign Ministry as developing countries. Securency’s Guardian may be selling in developing countries but more than this, a report published by an Australian newspaper, The Age, deduced that these countries are also some of the most corruption-prone.
“It [Securency] excels at doing business not only in Vietnam but in some of the most corruption-prone countries in the world,” the paper said.
Mr. Berry heads Contec Global, a company with diversified interests in Energy, Security Technologies, hospitality, and construction. The Security Technologies unit of the group is concerned with Biometrics, Smart Cards, e-passports, and currency. There are claims that 40% of Africa’s population, including Nigeria, use passports designed, processed, printed, and delivered by Contec Global.
Continental Transfer Technology Limited is another company which Mr. Berry sits on its board, along with some Nigerians; Hassan Ibeto, Adam Ali Biu, and his brother, Roheen Berry.
Mr. Berry, who has considerable influence in security prints and has previously been investigated in Uganda, allegedly had at least $ 5 million paid into an offshore account which belongs to him. He is said to have worked with Mr. Harvey to give Securency’s African office access to the Nigerian market.
Mr. Harvey claims he was only called into the deal after the supply contracts had been completed.
“My job was to create demand for Securency to countries; we are a group of marketing companies that seek business and access markets,” he said.
The CBN, however, claimed ignorance of the existence of a bribery scheme in the Securency deal.
The past CBN governor, Professor Chukwuma Soludo, was, however, quizzed in connection with the alleged contract scandal by the operatives of the Economic and Financial Crimes Commission (EFCC) in Abuja early January, even as there were hints that may be charged to court by the commission.
Currency change as a fait accompli
Ugochukwu Okoroafor, the apex bank’s spokesperson, had said last week that unlike in the past where printing firms held the patent and right to produce the naira, the currency restructuring would make the CBN hold the patent of the new set of currencies that would emerge from the process.
“We need to take back all our patents and right,” he said. “Right now, some of the patents and rights do not belong to Nigeria or the CBN. We had a rude shock when that became an issue when we wanted to print a particular set of notes. So we are using this exercise to take back that right. If it belongs to Nigeria, nobody will hold us to ransom.”
Justifying the move, Okoroafor said the proposed introduction of a higher denomination of banknote would enable the apex bank save about N7 billion out of its annual cost of printing currency. “Every currency gets reviewed once in a while,” he explains, adding, “Right now, the United Kingdom is reviewing its currency. So currency review is something that we must do. As a monetary authority, it is our responsibility enshrined in the CBN Act 2007.”
Mixed reactions greet new policy
Commenting on the new policy, some labour leaders in the financial sector urged the CBN to always carry out appropriate research on any issue before making it a public policy.
Leaders of the Association of Banks, Insurance and Financial Institutions (ASSBIFI) and the National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE) argued that proper research would help to forestall adverse implications of any policy.
Sunday Salako, ASSBIFI’s President, argued that the apex bank should have done enough research to ensure that the polymer currency would last longer than ordinary paper notes.
Mr. Salako observed that since the polymer notes were not durable, there was need for them to be changed.
“It is good that the CBN has realised its mistakes and want to change the notes. Let us give them the opportunity to ensure that we have durable money.
“I advice the apex body to do its home work well before the implementation of any of its policies,” he said.
Mohammed Sheikh, NUBIFIE’s General Secretary, also said that the CBN would have achieved its desired result if they had subjected the changes in currency notes to public debate.
“If the CBN had subjected the first change to a public scrutiny, this reverse from polymer to paper notes will not take place and the country would not have spent huge funds in printing polymer.
“Various stakeholders would have debated the polymer issue and there would have been better options, instead of employing international consultant who do not understand how things work in Nigeria to make decisions,” Mr. Sheikh said.
He advised the Central Bank to focus more on improving the macro-economic policies for the development and growth of the country.
Economists have expressed divergent views on the decision to withdraw polymer notes from circulation soon and replace them with paper notes.
While some experts agreed with the decision, others blamed the CBN for performing experiments with the country’s economy.
For instance, Lagos-based economist and monetary analyst, Mr. Henry Boyo, said the monetary authorities were confused.
“There is no doubt that Nigerians are being taken for a ride. Some of us told them then that the coins and polymer notes would not work, because they would have little acceptance due to its value,” he said.
Boyo said the authorities should concentrate on value of the denominations rather than types of currency.
“The N5, N10, N20 and N50 notes are doing the job that coins should do. The N50 is equivalent to 30 cents. Can you imagine 30 cents in notes in any serious minded economy?” he asked.
However, the Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, said the move to revert to paper notes would have little or no effect on the economy.
“We are moving to a cashless economy and the denominations are low; so, they are irrelevant. Total money supply in circulation is around N1.5tn and a large percentage of total transactions are done in Lagos and the other states that will be joining the pilot scheme, so, I don’t see any problem with the change,” he said.
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Posted in Nigerian Newspapers. A DisNaija.Com network.
Source: The Nation Newspaper
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•Deploy more personnel as army chief vows to wipe out terror group
•Security beefed up at N’Assembly
Deji Elumoye and Kingsley Nwezeh in Abuja
Abuja, Nigeria’s seat of power, is under a massive security cordon following threats of attacks by insurgents and the increasing wave of banditry in the contiguous states of Kaduna, Kogi, Nasarawa and Niger States, THISDAY’s investigation has revealed.
There has been a wave of kidnappings in the outskirts of the federal capital, notably Pegi, Tuganmaje and Kuje among others, which the police have battled in recent times.
The security situation in and around the Federal Capital Territory (FCT) was heightened by the pronouncement of the Niger State Governor, Mr. Sani Bello, that Boko Haram fighters who he said sacked 50 villages in the state and hoisted the terror group’s flag, were about two hours drive away from the FCT.
Security has also been beefed up at the National Assembly as operatives, yesterday, thoroughly screened every vehicle approaching the National Assembly complex in Abuja.
The deteriorating security situation nationwide prompted the National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, to warn that the 2023 general election may not hold, demanding the declaration of a state of emergency as well as the convocation of a national conference.
However, the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, yesterday restated the Nigerian Army’s determination to annihilate Boko Haram.
But the Governor of Katsina State, Hon. Bello Masari, cautioned against declaring a state of emergency, saying doing so isn’t the solution to combat the security challenges facing the country.
The security of the nation’s airports was also in focus yesterday as the Office of the National Security Adviser (ONSA) said there was no threat to them.
THISDAY’s investigations showed increased presence of troops, police, Nigerian Security and Civil Defence Corps (NSCDC) personnel and intelligence operatives at the three strategic entrances to the city notably, Keffi, Zuba and Gwagwalada.
More checkpoints were also mounted around Gwagwalada and Keffi.
THISDAY also observed increased intelligence deployment at the entrance and the borders of FCT with contiguous states.
Beyond the borders, there were more deployments and police patrols inside the city and increased intelligence deployments as well.
Security sources told THISDAY: “There are deployments here and there but they are routine. Alertness is key to a secure environment.”
It was also learnt that security agencies were involved in frenzied meetings throughout yesterday.
The meetings, coordinated by the office of the Chief of Defence Staff under the new joint operational strategy of the armed forces, were aimed at coordinating a joint response to possible threats of attack to the FCT.
“I understand the security teams have been meeting for some days now and if you look around you, you will notice that there are increasing patrols and numbers of security personnel. The threats are not been taken lightly,” a source said.
National Assembly workers, lawmakers and visitors also had a harrowing experience accessing the legislative complex due to heightened security in the area.
Security operatives thoroughly screened every vehicle approaching the National Assembly complex in Abuja, impeding both human and vehicular traffic.
The Sergeant-at-arm of the National Assembly and other security agencies supervised the operations, leading to huge traffic build-up inside the complex.
Legislative staff, visitors and lawmakers were seen patiently waiting for their cars to be searched so that they could go ahead with the business of the day.
Some staff and visitors at some point got tired of waiting and were seen alighting from their cars to trek from the gate to the complex.
Meanwhile, the ONSA has said there is no threat to the nation’s airports.
A statement by the Head of Strategic Communication, Mr. Zachari Usman, said the reports of threats to the airports were an internal correspondence of security threat assessment misconstrued as security threat to the airports.
PDP Demands State of Emergency
In a related development, the PDP National Chairman, Prince Uche Secondus, yesterday demanded the declaration of a state of emergency, warning that the 2023 general election might not hold if the federal government failed to tackle insecurity.
He called on the federal government to summon a national conference to address the spike in insecurity.
Secondus added that the national caucus of the party will meet today to discuss the state of the nation.
Addressing members of the National Executive Committee (NEC) in Abuja, Secondus said: “We are worried Abuja is not even safe. It is no longer politics. We got alert of plots to bomb and burn down our airports.
“We urge the federal government to declare a national state of emergency in security. There is the need to call a national conference to discuss the insecurity in the country.
“There may not be any election in 2023 in Nigeria due to insecurity. This government must listen to the people. The Buhari government should call a national confab to discuss security and state of the nation. It is no longer politics. This time we are not playing politics. Let’s keep politics aside and move the nation forward.”
He said the country had been grounded, regretting that there had been no matching response from the federal government.
Secondus said in the past, terrorism in the North was confined to the North-east, but with the report of Boko Haram occupying villages in Niger State, terrorism had spread to the North-central
“Herdsmen are also menacing in the West; gunmen causing havoc in the East; and the militants in the South; all killing, looting, raping, maiming and burning down homes. The situation is bad; Nigerians all over are living in fear,” he said.
The Senate Minority Leader, Senator Enyinnaya Abaribe, said the problem of Nigeria was outside of the PDP headquarters, while pledging the support of the Senate to the declaration of state of emergency in security.
Abaribe said he deliberately decided not to speak on the floor of the Senate but to allow the APC senators to speak so as to avoid being accused of giving a partisan colouration to the issue of insecurity.
He stated that only electoral reforms would give victory to the opposition party in the 2023 general election and ensure a democratic defeat of the APC-led federal government.
Also, the Minority Leader of the House of Representatives, Hon. Ndudi Elumelu, commended the NEC and the PDP leadership for their collective efforts at resolving the House leadership crisis.
The NEC meeting adopted the position of Secondus, calling on the federal government to convoke a national conference to discuss the state of insecurity in the country, according to a communiqué read by the National Publicity Secretary, Mr. Kola Ologbondiyan.
Army Chief Vows to Wipe Out Boko Haram
The army yesterday reiterated its commitment to wipe out Boko Haram.
Chief of Army Staff (COAS), Lt. Gen. Ibrahim Attahiru, told reporters in Maiduguri, Borno State that Boko Haram had been defeated in many encounters and would continue to be defeated until it’s annihilated from Nigeria.
“We will take on Boko Haram decisively, and we are committed to the focus of the operations, which is the total annihilation of Boko Haram from Nigeria,” he said.
The COAS, who was visiting the headquarters of Operation Lafiya Dole in Maiduguri for the fifth time since his appointment four months ago, said the visit was to boost the morale of the troops, reassure them and listen to any issues affecting them.
Earlier, the Theatre Commander of Operation Lafiya Dole, Maj. Gen. Farouq Yahaya, lauded the visit, which he said had continued to boost the morale of the troops.
“We are honoured, we are grateful, we are encouraged by those visits. You provided us guidance, logistics and other things we required. We are most grateful for those visits,” Yahaya said.
State of Emergency Won’t Solve Security Challenges, Says Masari
Katsina State Governor, Hon. Aminu Masari, has, however, said declaration of a state of emergency won’t solve the security challenges facing the nation.
Masari, who spoke yesterday with journalists after meeting with the Chief of Staff to the President, Prof. Ibrahim Gambari at the State House, Abuja stated that he was against the recent call by the House of Representatives for the declaration of a state of emergency in the security sector as it would not solve the problem.
According to him, declaring a state of emergency will not achieve the desired effect as the security structure and personnel to be used to execute the emergency are already overstretched in a bid to safeguard lives and property.
Sourced From: THISDAYLIVE
Tribune Online
Nigeria records 55 new COVID-19 infections, total now 165,110
The Nigeria Centre for Disease Control (NCDC) has recorded 62 new cases of COVID-19, bringing the total number of infections in the country to 165,110. The NCDC disclosed this on its official Twitter handle on Friday. “55 new cases of #COVID19Nigeria; Lagos-21, Yobe-19, Ogun-6, Akwa Ibom-3, Kaduna-2, Plateau-2, FCT-1, Rivers-1.” YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE COVID-19: Nigeria Recorded […]
Nigeria records 55 new COVID-19 infections, total now 165,110
Tribune Online
Sourced From: Tribune Online
By Olasunkanmi Akoni
The people of the South East region have been urged to explore the power of negotiation and mutual settlement in the face of ongoing killings and security challenges in the zone because the east can not afford another war at present.
Stakeholders from the South-East geo-political zone made the remark on Thursday, at the unveiling of the book, “Igbo, 50 years after Biafra,” written by Special Adviser to Lagos State Governor Babajide Sanwo-Olu on Drainage Services, Joe Igbokwe, held at Ikeja G.R.A.
Speaking at the unveiling of the book, the chairman of the occasion, Mr. Cutis Adigba,
urged the people of the South-East to learn to build bridges across the country, so that they can realise their ambition of producing the next president of Nigeria.
Adigba urged leaders from the zone to discourage the move and agitation by some youths in the South East to go to war and secede out of Nigeria.
Also read: Banditry: Disregard viral video, Niger State gov’t urges residents
He said that Igbo have always found it difficult to rule Nigeria because they refused to build bridges across the six geo-political zones that made up Nigeria.
While describing the agitation as uncalled for, Adigba noted that after two decades that Nigeria returned to civil rule, the Igbo has predominantly identified with only one political party.
He maintained that remaining in one party can not advance the cause of the people of South East and cannot make them realise their objective of producing an Igbo man as president.
He maintained that the publisher of the book, Igbokwe played politics outside his state, so that the Igbo race can be integrated with one another race.
Adigba said the failure of the Igbo to reintegrate with other ethnic nationalities politically was responsible for the retrogression of the race in Nigerian politics.
Igbokwe, also addressing guests on the occasion, maintained that the Igbo are not advancing politically because they refused to be integrated into National politics, lamenting that, despite their success in business, they are not successful in playing politics at the national level.
Corroborating Dimgba, Igbokwe noted that there was the need for the Igbo people to stand up and build bridges so that their objective of producing the next president of Nigeria could be realised.
According to him: “I have decided to raise my voice, I hope my people will hear me while trying to quell the effect of the war, our people are spoiling for another war, mayhem is being unleashed in Igbo land, and there is palpable fear.
“Those who could speak have lost their voice, mindful of the consequences of their actions, I am calling on all Igbo leaders to speak up because all actions carry consequences, consequences of the silence will be too dastardly to sustain.
“Those silently supporting the wild wind should be careful or else they hand over to their children,” he said.
Igbokwe urged those spoiling for war to jettison their plan and embrace dialogue, urging them to learn from the South West region that despite the challenges faced after the annulment of the June 12, 1993, election, they did not go to war, and the region had the opportunity of producing two of her sons for presidential position in 1999.
“You have to build bridges to become president of Nigeria, but it is unfortunate the Igbo are burning bridges.”
Speaking at the event, Chief Uche Dimgba who is the coordinator of Igbo in All Progressives Congress, APC in Lagos, described Igbokwe as “a Frank, fearless and reliable leader, who based his views on issues and stand by his opinions, and we the Igbo have confidence in him and believe he can lead us aright.”
“He is a leader we Igbo believe in and we will follow him. If he can serve all the governors produced in Lagos State since 1999, he is a better man to follow because he possesses all the experience that can be of benefit to Igbo both at home and in the diaspora.”
The post Attacks on S’East: We must explore all options of negotiation — Stakeholders urge Igbo appeared first on Vanguard News.
Sourced From: Vanguard News
The government said that no worker should stay back beyond 6:00 p.m. within premises of buildings undergoing construction.
The post Insecurity: Lagos bans occupation of abandoned buildings appeared first on Premium Times Nigeria.
Sourced From: Premium Times Nigeria
Nigeria records 55 new COVID-19 infections, total now 165,110
Military, Police Ring Abuja to Forestall Boko Haram Attack
UFC: Usman gets N584m after beating Masvidal
Insecurity: Lagos bans occupation of abandoned buildings
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