News
CBN Directs Banks to Sell Excess Dollars
The Central Bank of Nigeria (CBN) has issued a directive mandating Deposit Money Banks (DMBs) to divest themselves of excess dollar holdings by the latest deadline of February 1, 2024.
The CBN, in a circular released on Wednesday titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,” expressed concern over the growing trend of banks amassing large foreign currency positions for profit. The move follows closely on the heels of a prior circular, issued just 48 hours earlier, cautioning banks and foreign exchange (FX) dealers against disseminating false exchange rates.
The circular, dated January 31, 2024, and signed by Dr. Hassan Mahmud, the Director of Trade and Exchange at the CBN, along with Mrs. Rita Sike, the representative of the Director of Banking Supervision, accused banks of holding excessive foreign exchange positions.
The apex bank set a deadline of February 1, 2024 (today) for banks to liquidate their surplus dollar reserves.
Highlighting the risks associated with banks maintaining large Net Open Positions (NOP), the circular emphasised the incentive for banks to hold excessive long foreign currency positions, exposing them to potential foreign exchange risks.
To address this, the CBN introduced prudential requirements, focusing on managing the NOP.
Under the new regulations, the NOP must not exceed 20% short or 0% long of the bank’s shareholders’ funds. The calculation is to be performed using the Gross Aggregate Method, offering a comprehensive overview of the bank’s foreign currency exposure. Banks exceeding these limits in their current NOPs are instructed to adjust their positions to comply with the regulations by February 1, 2024.
Moreover, the circular mandates that banks use specific templates provided by the CBN to calculate their daily and monthly NOP, along with their Foreign Currency Trading Position (FCT).
The CBN’s latest measures aim to curb the growing trend of banks holding excessive foreign currency reserves and contribute to the overall stability of Nigeria’s exchange rate.
News
NYSC to Increase Corps Members’ Allowance to ₦77,000 Monthly
The management of the National Youth Service Corps (NYSC) has announced that corps members across the country will soon begin receiving ₦77,000 as their monthly allowance.
The Director General of the NYSC, Brigadier General YD Ahmed, disclosed this on Tuesday in Abuja, according to a statement issued by the NYSC spokesperson, Caroline Embu.
General Ahmed emphasized that the welfare of corps members remains a top priority for his administration, noting that arrangements for the payment of the new allowance have been finalized.
The increase in corps members’ allowances is in line with the recent review of Nigeria’s minimum wage from ₦30,000 to ₦70,000, which was signed into law by President Bola Tinubu in July 2024.
This development marks the second major adjustment in corps members’ stipends in recent years. In 2020, the NYSC increased the allowance from ₦19,800 to ₦33,000 following the implementation of the ₦30,000 minimum wage.
The latest increment reflects the government’s commitment to improving the living standards of Nigerian youths serving their country under the NYSC scheme.
President Tinubu’s signing of the new minimum wage bill in July 2024 came after months of negotiations between government authorities, labor unions, and private sector stakeholders. The adjustment aims to address inflationary pressures and improve the economic well-being of workers across the country.
The NYSC has assured corps members of its continued commitment to their welfare and development as they contribute to national unity and service.
News
Unprofessional Conduct: Police Demote Officer, Disband Unit
The Abia State Police Command has demoted a police corporal, Okonkwo Ebuka, to the rank of constable following his involvement in unprofessional conduct and incivility towards members of the public.
The Command’s Public Relations Officer, Maureen Chinaka, confirmed the disciplinary action in a statement released on Tuesday.
According to her, the demotion was the outcome of an administrative proceeding where the officer was tried in an orderly room and found guilty of discreditable and unprofessional behaviour.
“The Commissioner of Police, Abia State Command, CP Danladi Isa, in alignment with the vision of the Inspector General of Police (IGP) to establish a professionally competent, service-driven, rule-of-law-compliant, and people-friendly police force, has disbanded the Command’s Anti-Cultism Unit for unprofessional conduct and incivility towards members of the public,” the statement read.
It further stated that Corporal Okonkwo Ebuka, formerly attached to the Area Command in Aba but deployed on special duty at Isuochi, was demoted as part of efforts to enforce discipline within the Force.
“The Commissioner of Police emphasized the Command’s zero-tolerance policy for any form of unprofessional conduct among officers that could tarnish the good image of the Force,” the statement added.
The Abia State Police Command reiterated its commitment to upholding professionalism and fostering positive engagement with the public in line with the principles of ethical policing.
News
Saki Town Mourns as Okere’s Wife, Queen Waliyat, Dies
Queen Waliyat Olabisi, the second wife of the Okere of Sakiland, His Royal Majesty, Oba (Dr.) Khalid Oyeniyi Olabisi Oyedepo III, has passed away.
She died on Tuesday morning, leaving the people of the ancient town in mourning.
As of the time of filing this report, the cause of her death remains unknown. However, her sudden demise has sent shockwaves across the community.
Many indigenes of Saki have taken to social media to express their grief, sharing heartfelt tributes and condolences for the royal family.
The late Queen Waliyat was celebrated for her elegance and impactful contributions to both the palace and the community.
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