The Central Bank of Nigeria (CBN) said it will implement strict regulation and supervision on banks to ensure that they do not fail.
Lamido Sanusi, the CBN governor said, “The apex bank has a responsibility to ensure that depositors and investors’ funds are protected through adequate regulation. There is nothing like soft regulation and I don’t believe in it.”
A regulator like ours needs to protect depositors and investors’ funds. As far as the banks get license from us they must be strictly regulated. So we don’t want to go back to the bad situation we find ourselves. The banks, before the recent CBN’s intervention were not adequately regulated that was one of the reasons the managing directors of the troubled banks were busy buying jets and building estates without lending money to the real sector and Small and Medium Scale Enterprises( SMEs).”
According to him, “We will not allow banks to rate themselves nor rely on rating agencies to rate them because it is the information given to the rating agencies that are used to rate them. We will try as much as possible to use the information we have from our supervisory role to assess them. However, we would encourage credit bureau institutions to provide information on the credibility of Nigerians that want credit from the banks.
“Banks are established to play intermediation role. So if any person is able to meet the requirement for loan disbursement the bank should be ready to give out such loan. Banks lend to people with the hope that the borrower will repay as at when due. But because the troubled banks gave out loans to their friends, relative and some political class without meeting the requirement for loan disbursement they had crisis with liquidity and other problems.”
On the recovery of debts from debtors of troubled banks by the Economic and Financial Crime Commission (EFCC), Sanusi said , “It was proper. The EFCC is acting on the Act establishing it. In fact, the banks invite the EFCC to recover the money from their debtors who had refused to comply with the terms of lending.
It is not the EFCC who go for the debtors, it is the banks that invite them at the first instance. So there is nothing wrong if the EFCC should enforce the recovery of debt. So far the Commission has recovered over N100 billion. Is this not an achievement?” he asked.
Sanusi, while speaking on the opportunity for foreign investor owning banks in Nigeria, said, “The economy is open for any investor to come in. At the moment, CBN is undergoing technical assessment of applications submitted to it. Foreign investors are encouraged to invest in banks but we are not looking for hot money. We are looking for investor who has the interest to invest in our economy for long term. They must possess the expertise for risk management, corporate governance and overall management.
“One of the major problems with the troubled banks was the level of exposure to the capital market. I hope when the Asset Management Company (AMC) takes off , the recapitalisation problem would be solved. We are expecting approval from the National Assembly as the AMC bill is still with them.
The yuletide has delayed the passage of the bill. Probably in the coming few weeks the bill will be approved. When the toxic asset is bought by the AMC, probably the banks will just require additional N300 or N400 billion to stabilize.
NCC Threatens Illegal Users of GSM Boosters with Arrest, Prosecution
Nigerian Communication Commission (NCC) has warned telecom consumers to desist from using illegal GSM boosters.
The commission also said that anyone caught using a GSM booster without obtaining approval of a duly licensed network operator will face arrest and prosecution.
GSM boosters are devices that transmit and receive telecommunications signals and can therefore interfere with other radio frequency equipment.
Ikechukwu Adinde, director, public affairs, NCC, said in a notice published on NCC website, that only licensed network operators are allowed to use GSM boosters.
The booster, also known as amplifier or repeater is made up of three main elements – exterior antenna, amplifier, and interior antenna.
They form a wireless system to boost cellular reception
“Members of the public should note that, willful interference with any wireless telegraphy is an offence under Section 16 of the Telegraphy Act, 2004,”it said
The agency said it will not condone any flagrant breach of this law.
It has also enforced measures to prosecute offenders.
Accordingly, monitoring mechanisms have been put in place and anyone caught using a GSM booster without obtaining approval of a duly licensed network operator will face arrest and prosecution.
“Any member of the public with useful information regarding the illegal use of GSM Boosters should contact the Commission on 09-4617000/7351 or send an email to [email protected],” the notice said.
“Individuals desirous of using GSM Boosters should note that they can only do so in conjunction with licensed network operators,” it added.
Tizeti Selects Nokia to Provide LTE Fixed Wireless Access Solution for High-Speed internet Services in Nigeria
Tizeti announced that it selected Nokia’s Fastmile Long Term Evolution (LTE) technology to enable usprovide superior internet services to over 1 Million subscribers in Port Harcourt, Edo and Ogun in Nigeria.
Tizeti will deploy Nokia’s AirScale Base Station TDD-LTE and FastmileFixed Wireless Access (FWA) gatewaysto deliver premium internet and Virtual Private Network (VPN) services to Residential, Small and Medium Enterprises (SMEs).
The solution will also enable Tizeti’sto deliver a more robust, high-speedinternet service to subscribers and the flexibility to seamlessly evolve to 5G Fixed Wireless Access when needed.
Nokia’s FWA solution enables Tizeti to fast-track broadband access and provide a best-in-class broadband experience to its subscribers.
Nokia’sAirScale Base Stations ensure high-quality connectivity and coverage and enablesTizeti to evolve the network in line with customer demand.
Nokia’sFastmilegateways connect wirelessly to the existing network to createa fastbroadband connection and enhanced Wi-Fi experience in the home.
The Nokia Network Services Platform will help Tizeti to simplify operations and quickly respond to changing market demands.
Kendall Ananyi, Tizeti, said:“We are committed to providing the best-in-class network experience to our subscribers. We are confident that Nokia’s proven technology and expertise will help us differentiate our services based on quality. This a crucial project for us as it introduces LTE in our networks and allows us to bring new and innovative services to our subscribers.”
Eniola Balogun, Nokia, said:“We are thrilled to work with Tizeti on the initiative to upgrade their network to bring the latest products and services to its subscribers. Nokia Fastmile will help Tizeti to cost-effectively enhance the customer experience.
The project will also enable them to delight their subscribers by providing more reliable data services.
On the other hand, Tizeti will benefit by adding new revenue streams.”
Risk Assets Push Higher on Vaccine Hopes; Eyes on the Fed
By Hussein Sayed, Chief Market Strategist at FXTM,
After two consecutive weeks of back-to-back declines, global stocks kicked off Monday with solid gains amid a surge in M&A activity and positive signs towards vaccine developments. Currency markets were little changed ahead of a busy week of monetary policy announcements, while Oil and Gold ticked slightly higher.
The two big deals announced over the weekend were Softbank’s plan to sell chipmaker ARM to Nvidia for more than $40 billion and Gilead Sciences to acquire Immunomedics for a price tag of $21 billion. Meanwhile, on the vaccine front, AstraZeneca resumed its phase-3 trial on Covid-19 after being suspended last week following a neurological illness developed in one participant, and Pfizer announced that its vaccine could be distributed before year-end if found safe and effective.
Central Banks will take centre stage this week with the Federal Reserve, Bank of England and Bank of Japan all due to announce policy decisions. Out of the three meetings, the Fed is likely to be the most watched following its historic shift towards average inflation targeting. The big question remains how will the FOMC put this policy into action?
From what we know now, the Fed is set up to keep interest rates near zero for a long time, possibly for several years. Given the new framework, any spike in inflation won’t translate into immediate rate hikes as the Fed wants to compensate for the lost years when they have failed to hit the target. The dot plot will be the key guide for investors and traders alike. If inflation projections remain at 2% or below for the foreseeable future, this will solidify market expectations for a low rate environment for many years to come. That said, Jay Powell would still have to explain in more detail how the new framework will be translated into policy action.
In June’s economic projections, the Fed anticipated unemployment would be at 9.3% by year-end, but, in August, unemployment was well below that forecast at 8.4%. Many other economic data surprised to the upside during the June – August period in a clear sign that most economists were overly pessimistic towards the strength of the recovery. However, there is still a considerable amount of uncertainty given the latest surge in Covid-19 cases worldwide and the US, especially as we get closer into the winter season. A second wave will undoubtedly put the recovery at risk in the final quarter of the year and it will be interesting to see the Fed’s view on that issue.
As for the market selloff over the past two weeks, the Fed isn’t likely to show any signs of concern. In fact, policymakers should be satisfied with the pullback as the risk of a bubble in several assets has been growing due to the Fed’s extremely accommodative policies. Unless we see another 10 -15% drop, do not expect the Fed to intervene.
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