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E-Financial

Emefiele and the Burden of a Prophet

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Mr. Godwin Emefiele, CBN governor
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By Jackson Ugbechie

Dateline June 2015: Godwin Emefiele, the Governor of Central Bank of Nigeria (CBN), banned importation of 41 items which the apex bank classified as ‘not valid for forex’.

Emefiele and the Burden of a Prophet

Mr. Godwin Emefiele, CBN governor

These items ranged from consumables like rice, poultry products, vegetables and processed vegetable products to building materials like cement, roofing sheets, etc.

The aim was to encourage local manufacture of these items, all of which can be produced locally. The other objective of the ban was to ease pressure on the nation’s foreign reserves. Crude oil (the major source of forex) was beginning to lose its allure in pricing. Simply put: national income (inflow) was shrinking perilously.

Today, by benefit of hindsight, it could be appropriately said that Emefiele was a prophet who saw tomorrow and quickly rallied his people to prepare for the impending storm.

Not long afterwards, the real storm came bearing down on global economies. Nigeria and other nations with huge reliance on crude oil revenues took a heavy shellacking from the storm.

Crude oil prices took a dip. From a mere dip to a free fall until it bottomed out at $27.67 in 2016.

Fast-forward 2020. Oil price is still low. Recovery has been sluggish, accentuated by the global Covid-19 pandemic. Nigeria with a population of about 200 million, low export, heavy import-dependent economy and a lifestyle that borders on flamboyance has been much hobbled by the oil price drop.

The naira is still under pressure but it could have been worse if CBN is still funding the importation of the over 40 banned items.

It could have been more difficult defending the naira in the forex market. This is the sense in which Emefiele deserves commendation for his uncommon boldness to stop the issuance of forex for the importation of these items.

Emefiele’s foresight, vision and strong anticipatory hunch has saved Nigeria from what could have been the worst economic crisis in human history since the Great Depression.

The decision to declare over 40 items ‘not valid for forex’ must have been a difficult one to take. But great leadership is about making tough calls; taking, sometimes, unpopular decisions.

Emefiele did that at the most auspicious time. It was contrary to the wishes of the advanced economies of the West which see Nigeria as their largest, most profitable market in Africa.

A policy to encourage local manufacture and patronage of locally made goods should be music to any patriotic Nigerian.

It will encourage honing of skills, create jobs in millions, stop the drain on our external reserves and ultimately shore up the sagging strength of the nation’s primary sector.

But you don’t expect such decision to go down well with the advanced nations whose major market in Africa was about to be shut.

This explains the baleful treatise conjured by The Economist magazine to deride the CBN policy. The usually opinionated UK magazine had in the wake of the ban on importation of over 40 items published a self-serving satire on Emefiele’s efforts to save the naira.

The copiously disingenuous article in The Economist tried to denigrate the CBN policy. But that was not enough to make Emefiele change his mind. The multiple-award winning central banker, convinced that the policy was in the best interest of the county, stuck to his gun.

He was unwavering. Now, Emefiele has been proved right and The Economist wrong. Nigerians are producing the banned items from grains to roofing sheets.

No matter the cynicism from those who preach classical textbook economic theories to Nigeria but act otherwise in their native countries, the truth is that foreigners cannot love Nigeria more than Nigerians. Emefiele proved this truism by raising the red flag when he foresaw the lurking economic turbulence.

The Nigerian naira dilemma is a peculiar mess created largely by a clan of crooked Nigerian elite, it will never go away by mere application of economic theories that never worked anywhere, even in the advanced West.  The Nigerian problem can only go away by the application of well-thought through policies as Emefiele did.

To better appreciate the Emefiele magic, let’s consider this scenario. In 2013 at a time when crude price was $120 per barrel what CBN received to service the forex market from petroleum inflows either from petroleum products trading, royalty, taxes, NNPC etcetera was as high as $3.3 billion in a month. By June 2014 when external reserve had dropped to about $37 billion, what the nation got had dropped to less than $2 billion. Recall that the whole crisis started in July 2014 and by March 2015 when crude price had dropped to about $48pb, the nation’s reserve had gone down to $30 billion. At that point, what was coming in as forex which the CBN will use to service the market had dropped to about $1.3bn from about $3.3 billion in just over a year.

At that time, around January/February of 2015, CBN usually funds the forex market by Monday and Wednesdays with $200 million each of the days which is $400m in a week. At that time CBN was fighting the hostile market and saying we’ll defend the naira.

The inter-bank market was defending the market with about $100million per day which is $500 million per week. If you add that to the official buffer of $400m on the part of CBN, it adds up to $900m weekly. This means that in a month Nigeria needed $3.6 billion dollars minimum to fund the forex market and by interpretation fund importation.

As the price of crude continued its free fall, monthly outflow hit $4bn against an inflow of just $1.3 or $1.5 which brought net depletion of Nigeria’s reserve on a monthly basis to about $2.5 billion. If CBN had continued the depletion of our reserve from March 2015 by $2.5 billion monthly, by now Nigeria would have zero reserve. That is the stack reality.

And this is why Nigerians should commend the boldness and farsightedness of Emefiele to place a historical and landmark ban on over 40 items. Not only has he helped to boost backward integration, the policy eased pressure on the nation’s reserve.

Obviously, Nigerians are still paying dearly for their lavish lifestyle. Statistics from the National Bureau of Statistics (NBS) shows significant importation of certain items. In the half-year (January – June) of 2019, Nigerians spent a total of N334.3 billion to import prepared foodstuffs, beverages, spirits, vinegar and tobacco. NBS says within that period Nigeria imported 21 different items with the major items including live animals, animal products, vegetable fats and oil, prepared foodstuffs, beverages, mineral products, textiles, broilers and vehicles.

Broilers, machinery and appliances form the biggest import which was estimated at N2.11 trillion. Mineral product ranked second with N1.3 trillion import in half-year 2019. Other top items on the import list include vehicles, aircraft and parts (N1.06 trillion), cement (N599 billion), metals (N386.1 billion).

In recent past before the restriction, Nigeria spent an average of $22 billion each year on food (rice, wheat, sugar, fish etc) importation. The sad fact is that all of this money go to reflate the economies of Thailand, India, China and the West.

If all of this could happen with restriction, imagine the scenario if there were no restrictions. Emefiele is indeed an unsung hero. That’s the burden of a prophet who is barely appreciated at home.

But first Nigerians must change their exotic and outlandish lifestyle. No nation builds a strong economy on importation.

_ Ugbechie, public affairs analyst, writes from Abuja.

 

 


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E-Financial

PalmPay Expands Access to Digital Insurance Through Strategic Partnerships

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PalmPay, a leading digital banking platform in Africa has announced the launch of strategic partnerships with top-tier insurance providers to offer accessible, affordable and simplified insurance products directly within the PalmPay app.

This initiative reflects the brand’s continued commitment to deepening financial inclusion and underscores its mission to improve the wellbeing of everyday Nigerians.

With only about 8.9% of Nigerians currently covered by any form of health insurance, the country remains one of the least insured populations in Africa. Barriers such as low awareness, affordability challenges, and trust issues continue to hinder broader adoption of insurance products.

PalmPay’s new insurance offering directly addresses these challenges by simplifying the purchase and management of insurance policies within the app. The PalmPay insurance feature is designed to make essential coverage, from health to device, and life insurance easily accessible at affordable prices, eliminating the traditional complexities often associated with insurance.

“Insurance is often perceived as complex or inaccessible, especially among underserved communities.” said Habib Kowontan, Head of Wealth Product at PalmPay. “Through these partnerships, we aim to break down those barriers by offering simple, reliable and affordable insurance options that are easily accessible within the PalmPay app.”

With over 35 million users across Nigeria, PalmPay continues to evolve as a smart, consumer-first digital banking platform. The integration of insurance services complements its growing suite of offerings, which includes transfers, bill payments, high-interest savings, and debit card services, making PalmPay one of the most comprehensive digital banking platforms in the African market.

“Our goal at PalmPay is to remove barriers and make essential services easily accessible to everyone,” said Mr Chika Nwosu, Managing Director of PalmPay. “Through these strategic partnerships, we’re expanding our services to be more inclusive and empowering our users with products that will positively impact their lives and finances.”

This rollout marks a significant milestone in PalmPay’s broader strategy to empower users with tools that enhance their daily lives. Building not just a payments app, but a smart and trusted financial partner for millions of Nigerians.


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E-Financial

Fidelity Bank Intensifies Support for Displaced Persons in Makurdi Camp

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Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka (Left); CEO, The Abbasid Charity Foundation, Hauwa Abbas (Centre); and Branch Leader, Fidelity Bank Plc, Makurdi, Terwase (Right), representing the Regional Bank Head, North Central, Sadi Zawiya, with some beneficiaries during the Fidelity Food Bank distribution event in Makurdi, Benue State recently.
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In a timely gesture aimed at improving the plight of internally displaced persons (IDP) in Benue State, leading financial institution, Fidelity Bank Plc, has distributed mattresses and essential food items to over 2,000 victims of the Yelwata attacks currently taking refuge at the Ultra-Modern International Market IDP Camp in Makurdi.

Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka (Left); CEO, The Abbasid Charity Foundation, Hauwa Abbas (Centre); and Branch Leader, Fidelity Bank Plc, Makurdi, Terwase (Right), representing the Regional Bank Head, North Central, Sadi Zawiya, with some beneficiaries during the Fidelity Food Bank distribution event in Makurdi, Benue State recently.

The donation, which was carried out in collaboration with the Abbasid Charity Foundation, is part of Fidelity Bank’s ongoing commitment to supporting vulnerable communities through its flagship Fidelity Food Bank program. Since its launch in April 2023, the Food Bank has distributed over 200,000 food packs to beneficiaries across Nigeria’s six geo-political zones.

Speaking about the donation event, the bank’s Divisional Head, Brand and Communications, Dr. Meksley Nwagboh reaffirmed Fidelity Bank’s dedication to Corporate Social Responsibility (CSR) and its mission to uplift communities.

His words, “Since its launch, the Fidelity Food Bank initiative has helped to alleviate the effect of poverty and malnutrition across the country. We are honored to be back in Benue State to continue this impactful initiative, and we hope that today’s donation brings much-needed relief and comfort to the beneficiaries during this difficult time”.

In her remarks, the Executive Officer, the Abbasid Charity Foundation, Mrs. Hawa Abbas, emphasized the importance of restoring dignity to the displaced, stating that the donation of mattresses was to ensure the IDPs no longer sleep on bare floors.

“This gesture is our way of letting the displaced persons know that they are not forgotten. We care deeply for them, and we hope this donation offers some comfort and hope, even in these difficult circumstances,” Abbas noted.

The Executive Secretary of the Benue State Emergency Management Agency (SEMA), Dr. James Iorpuu, who was represented by Camp Manager, Mr. Robert Nyom, expressed deep appreciation to Fidelity Bank and the Abbasid Charity Foundation for their timely support.

“Your intervention has brought much-needed relief to the camp and we thank you for your compassion and generosity towards improving the welfare of the displaced persons,” he said.

The bank’s outreach to the International Market IDP Camp in Makurdi represents the most recent of its ongoing critical and timely interventions. Previously, through its Food Bank Initiative, the bank provided essential food items to more than 1,500 residents impacted by the recent flood disaster in Mokwa, Niger State.

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.


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E-Financial

Secret Service Seizes $400M in Crypto, Cold Wallet among World’s Largest

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US Secret Service has quietly seized nearly $400 million in digital assets over the past decade, amassing one of the world’s largest crypto cold wallets, Bloomberg reported at the weekend, citing people familiar with the matter.

Secret Service Seizes $400M in Crypto, Cold Wallet among World’s Largest

The agency’s Global Investigative Operations Center (GIOC) has tracked funds through open-source tools, blockchain analysis, and patience, Jamie Lam, an investigative analyst with the US Secret Service, reportedly told law enforcement officials in Bermuda last month.

The agency’s crypto trove, much of which sits in a single cold-storage wallet, results from a string of investigations into scams. Scammers lure targets into seemingly legitimate crypto investment platforms in one typical scheme.

Victims often see initial profits before the sites vanish with their deposits.

“That’s how they do it,” Lam said. “They’ll send you a photo of a really good-looking guy or girl. But it’s probably some old guy in Russia.”

Lam’s team uses domain records, blockchain transactions, and VPN slip-ups to identify fraudsters. In one case, a cryptocurrency payment led investigators to another wallet. In another one, a brief VPN failure exposed an IP address, helping agents piece together the scam’s digital trail.

At the helm of the Secret Service’s crypto strategy is Kali Smith, who directs a team that has trained officials in over 60 countries to unmask online financial crimes.

The agency has focused on jurisdictions with weak oversight or programs selling residency to foreign nationals. “Sometimes after just a week-long training, they can be like, ‘Wow, we didn’t even realize that this is occurring in our country,’” Smith said.

The Secret Service’s work has uncovered scams ranging from romance-investment schemes to sextortion cases. One investigation involved an Idaho teenager who sent a nude photo to an online stranger. The scammer extorted $300 twice before the teen went to the police.

Analysts traced the payments through another coerced teenager acting as a money mule, leading to an account tied to nearly $4.1 million in transactions under a Nigerian passport.

British police arrested the suspected extortionist when he arrived in Guildford, England, where he remains in custody pending extradition.

 

 


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