Buhari addresses the state of the nation says 1000,500 notes no longer legal tender | Nigeria Updates- Breaking News, Nigerian News, Politics, Sports, Entertainment and Business - Nigeriaupdates.com Nigeria Updates
Connect with us

Business

Buhari addresses the state of the nation says 1000,500 notes no longer legal tender

Published

on

President Muhammadu Buhari has on Thursday 16th of February, 2023 addressed the Citizens of the country on the state of the nation due to the effort of his administration to sustain and strengthen the nation’s economy.

​This is coming after the outbreak of violent protest across the country by angry citizens who are unable to get cash from banks and POS operators across the country.

President Buhari in his address expressed his sympathy over the difficulties being experienced as his administration continue the implementation of the new monetary policies, aimed at boosting the country’s economy and tightening of the loopholes caused by money launders.

In his statement while re-assuring Nigerians said “I want to re-assure Nigerians, that strengthening our economy, enhancing security and blockage of leakages associated with illicit financial flows remain top priority of our administration. And I shall remain committed to my oath of protecting and advancing the interest of Nigerians and the nation, at all times”.

“​In the last quarter of 2022, I authorised the Central Bank of Nigeria (CBN) to redesign the N200, N500, and N1000 Nigerian banknotes”.

“For a smooth transition, I similarly approved that the redesigned banknotes should circulate concurrently with the old bank notes, till 31 January 2023, before the old notes, cease to be legal tender.

“In appreciation of the systemic and human difficulties encountered during implementation and in response to the appeal of all citizens, an extension of ten days was authorized till 10th February, 2023 for the completion of the process. All these activities are being carried out within the ambit of the Constitution, the relevant law under the CBN Act 2007 and in line with global best practices”

“I am not unaware of the obstacles placed on the path of innocent Nigerians by unscrupulous officials in the banking industry, entrusted with the process of implementation of the new monetary policy. I am deeply pained and sincerely sympathise with you all, over these unintended outcomes”

To stem this tide, the President have directed CBN to deploy all legitimate resources and legal means to ensure that all citizens are adequately educated on the policy; enjoy easy access to cash withdrawal through availability of appropriate amount of currency; and ability to make deposits.

To further ease the supply pressures particularly to Nigerians, Buhari have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender.

In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points.

President Buhari therefore assure Nigerians that his administration will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened. In this regard, the CBN shall ensure that new notes become more available and accessible to our citizens through the banks.

He however admonish every Citizens to eschew violence and avoid actions capable of disrupting the electoral processes. “I wish us all a successful General Elections”.

 

Business

Uganda-GTB Transition Into Tier 2 Credit Institution 

Published

on

By

 

 

 

 

 

The Guaranty Trust Bank (Uganda) Ltd has shed more light on why it transited from a Tier 1 Commercial Bank to a Tier 2 Credit Institution.

 

The Management team stated that this became necessary in view of the Bank’s current paid-up share capital position of UGX 41 billion (approx. USD 11.02 million) and the recent increase in the minimum paid-up share capital requirement for Tier 1 Commercial Banks operating in Uganda from UGX 120 billion (approx. USD 32.26 million) effective 31st December 2022, to UGX 150 Billion (approx. USD 40.32Million) by 30th June 2024.

 

 

Disclosing this in a statement made available to the media  on Thursday, GTBank Uganda revealed that continuing operations as a Tier 2 Credit Institution is within the Bank’s current capital base and will allow the bank to play to it’s core strengths in Retail and SME Banking.

 

The GTBank statement reads: “Guaranty Trust Bank (Uganda) Ltd (“GTBank Uganda”) today announced its intention to transition from a Tier 1 Commercial Bank to a Tier 2 Credit Institution. This position has become necessary in view of the Bank’s current paid-up share capital position of UGX 41 billion (approx. USD 11.02 million) and the recent increase in the minimum paid-up share capital requirement for Tier 1 Commercial Banks operating in Uganda to UGX 120 billion (approx. USD 32.26 million) effective 31st December 2022, and subsequently to UGX 150 Billion (approx. USD 40.32Million) by 30th June 2024.

 

“In November 2022, the Ministry of Finance, Planning and Economic Development in conjunction with the Central Bank of Uganda prescribed new thresholds for minimum paid-up share capital unimpaired by losses for Supervised Financial Institutions (SFIs) in Uganda.

 

“Following extensive engagements with all stakeholders including the regulator and our shareholders, we believe that this is the right decision considering global economic realities and it is fully aligned with the objectives of our Holding Company -– “to direct resources to opportunities in alignment with our current strategy of evolving the Guaranty Trust Brand to a full-fledged Financial Services Group.” Commenting on this development, Mr. Jubril Adeniji, Managing Director of Guaranty Trust Bank Kenya and Head of the East African region stated, “Continuing operations as a Tier 2 Credit Institution is within the Bank’s current capital base and will allow us play to our core strengths in Retail and SME Banking. As we make this transition, we will continue to review our positioning within the Ugandan banking sector in line with our objective of maximizing shareholder value.”

 

He further added; “As a Group, we are confident of Uganda’s trajectory as a country and remain committed to championing growth and expanding innovative financial services across Africa and will continue to explore viable opportunities in both existing and new business verticals that guarantee the best use of available capital.

 

“Given the foregoing, we have carried out a thorough review of our existing customer base and put adequate measures in place to continue to meet their banking needs pending final regulatory approvals and further directives by the relevant parties.

 

“We expect the transition to be seamless and commit to continuing compliance with all guidelines and best practice throughout the change process.”

Continue Reading

Business

Eko DisCos Reportedly Sacks CEO

Published

on

By

 

 

 

 

The board of Eko Electricity Distribution Company has reportedly relieved its Managing Director/Chief Eexcutive Officer, Dr. Tinuade Sanda, of her duties as MD/CEO of the company.

 

In a letter seen by Nairametrics and signed by the company’s Chairman, Dere Otubu, the company explained that the decision was due to a directive from the industry regulator, NERC.

 

“We have received a directive from NERC stating that all staff working for the utility must be employed directly by the utility, bound by applicable service conditions that are applicable to the employees of the utility, and paid through the utility’s payroll.

 

The Disco is obligated to comply with these directives due to the powers of NERC as stipulated in the Electricity Act 2023. In compliance with the aforementioned directive, all seconded staff from WPG Ltd are being released by Eko Electricity Distribution Plc and returned to WPG Ltd.

 

Accordingly, you are hereby relieved of your role, office, and position at Eko Electricity Distribution Plc effectively immediately, and returned to your employer, WPG Ltd.”

 

Nairametrics also obtained a copy of the letter from NERC titled ‘Alleged Ghost Workers In Eko Electricity Distribution Company – Call For Investigation,’ wherein it instructed the distribution company to “ensure all existing WPG secondees involved in the loss of revenue to EKEDC in this matter are withdrawn back to WPG,” indicating that all WPG staff seconded to Eko DisCo should be removed. WPG is the core investor in Eko DisCo.

 

According to the report other executives in the company who were seconded from WPG were also affected by the directive.

Continue Reading

Business

CBN raises interest rate to 24.75% in bid to curb inflation

Published

on

By

 

 

 

 

In a move aimed at tackling the rising inflation in Nigeria, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has announced a significant increase in the benchmark interest rate.

 

The  Monetary Policy Rate (MPR) which was previously 22.75 now stands at 24.75%.

 

Speaking to journalists after the MPC meeting, CBN Governor Yemi Cardoso, emphasized the committee’s commitment to curbing inflation and restoring the purchasing power of Nigerians.

 

He outlined the various policy adjustments implemented:

 

The most significant change is the substantial increase in the MPR to 24.75%. This makes borrowing more expensive, aiming to reduce spending and slow economic growth, ultimately bringing down inflation.

 

The CBN has also adjusted the Cash Reserve Ratio (CRR) for commercial banks, maintaining it at 45%. However, the CRR for merchant banks has been increased from 10% to 14%.

 

Additionally, the liquidity ratio remains unchanged at 13%. These measures aim to tighten control over the money supply in circulation, further dampening inflationary pressures.

 

Cardoso highlighted the importance of food security in the fight against inflation. He urged the federal government to fully implement its agricultural programmes, aiming to increase domestic food production and reduce reliance on imported food items, which can be susceptible to price fluctuations.

 

The increased interest rate will have a ripple effect throughout the Nigerian economy. Borrowers, including businesses and individuals, can expect to pay more for loans, potentially impacting investment and consumer spending.

 

However, the CBN’s actions are intended to bring down inflation in the long run, which would ultimately benefit Nigerians by stabilizing prices and protecting their purchasing power.

 

The MPC’s decision to aggressively raise interest rates reflects the seriousness of Nigeria’s inflation challenge.

 

Whether these measures will achieve the desired outcome remains to be seen. The effectiveness will depend on various factors, including the government’s success in boosting food production and the overall response of the Nigerian economy to tighter monetary policy.

Continue Reading

Trending

Copyright © 2014 NigeriaUpdates.