Business
CBN Recovers N8.6bn Excess Bank Charges
The Central Bank of Nigeria last Monday said it had recovered N8.6 billion as excess charges fraudulently collected from customers by Deposit Money Banks.
The amount was recovered between May 29, 2012, when the Consumer Protection Department was created to protect the interest of consumers, and March 31 this year.
The Deputy Director, Consumer Protection Department, CBN, Mrs. Umma Dutse, made the disclosure during a chat with journalists in Abuja.
She said within the period, the central bank had received about 2,800 complaints bearing on excess charges, conversion and frauds, adding that some of the banks had been given the mandatory N2m fine.
The department was created with a view to promoting consumer confidence in the banking industry. Its role also includes advocacy, enlightenment, education and promotion of awareness among consumers in the industry.
Dutse said, “So far, the department have received and treated over 2,800 complaints from consumers against Deposit Money Banks as at the end of the first quarter of 2013.
“We have also been able to recover more than N8.6bn in favour of various consumers. The figures that I have just mentioned exclude complaints that have to do with Automated Teller Machines and electronic-related complaints, and also complaints from other financial institutions like microfinance institutions and Primary Mortgage Institutions. They are just complaints against Deposit Money Banks.”
She also said, “We have had cause to sanction some banks for breach of regulatory violation the normal N2m; and another thing is that the banks are compelled by the regulation to indicate in their annual financial statements all these breaches.
“So, I don’t think banks would want their shareholders to be seeing all these statistics that they are not consumer-friendly. I am sure with these, we will see great changes very soon.”
The disclosure came barely a week after the Bankers’ Committee of the CBN revealed its plan to investigate the excessive charges imposed on customers by Deposit Money Banks.
Bank’s customers had in recent times complained about fresh and arbitrary charges imposed on them by the DMBs.
Although only few banks had announced publicly their plans to introduce new charges, investigation by our correspondent revealed that some of them had introduced the charges secretly.
For instance, First Bank of Nigeria Limited, Skye Bank Plc and Keystone Bank Limited recently introduced monthly maintenance fee on ATM cards, a move customers said was an indirect replacement of the scrapped N100 charge on ATM withdrawals.
Some banks were also said to charge as high as N50 for SMS to alert their customers of transactions on their accounts, far above the usual N4 that all mobile telecommunications providers charge for text messages.
Other arbitrary charges include N500 monthly maintenance fee for every current account, depending on the bank; and N5 inter-state commission on every N1,000 transferred into or withdrawn from savings accounts in a state different from where the savings account is opened or domiciled.
In some banks, customers forfeit their monthly interests when they withdraw more than three times in a month from a particular account.
But Dutse said the CBN would continue to ensure fair treatment as well as inculcate ethical practices among financial service providers in their relationship with consumers.
To achieve this, she said the bank would put in place a very strong monitoring and compliance scheme that would enable banks to stop arbitrary charges.
She said, “We are going to put a very strong monitoring and compliance scheme that is going to ensure that the banks do what they are supposed to do and I can assure you that with time, the banks will stop all these charges.
“All they need is to be monitored and to ensure that they are complying with regulation.”
Business
NASS Engages Agric Minister On Food Crisis
The National Assembly through its joint committee on Agriculture Production Services and Rural Development has engaged the Minister of Agriculture and Food Security, Senator Abubakar Kyari on an urgent solution to food inflation bedeviling the country.
The committee chaired by Senator Saliu Mustapha (APC Kwara Central), at an interface with the Minister, interrogated him on plans being put in place to arrest high cost of food prices in the country and make it affordable and available to the poor masses.
In his response, the Minister said the Federal Government has commenced distribution of 42,000 metric tonnes of grains to some focal points of state capitals nationwide.
“We have received directive and approval from Mr. President to distribute for immediate impact 42,000 metric tons of assorted grains free of charge to the Nigerian population.
“This was received in mid-February, as we are speaking, we have a record of the distribution being carried out, but I will want to plead with the honorable house and distinguished senators that some of the movements can’t be made public but a lot of states have started receiving their grains.
“We are distributing to state capitals in the first instance as you all are aware of the risk involved in the vandalism of foodstuff so we are working with the office of the national security adviser and other national security agencies.
“Furthermore, 58,500 metric tonnes of milled rice from mega rice millers will also be released into the market for stabilisation”, he said.
Speaking with newsmen shortly after the interactive session, Senator Mustapha expressed satisfaction with the steps being taken by the federal government.
He said: “From our interactive session, we are on the other side of the parliament; we are fully in the picture of what is happening, we are convinced that the steps being taken by the federal government are in the right direction.
“All we did again is to further emphasise on the need for certain things to be done on time, I think from this collaborative approach by the grace of God, Nigerians will have a better feel of the government policy on food security”.
Business
Obj Harps On Cheap Credit, Policy Consistency For Food Production
Nigeria’s former President, Olusegun Obasanjo, has called on the government to provide cheap credit and ensure policy consistency to enable farmers increase food production in the country.
The former President made the call as food inflation and nutrition security concerns grow in Africa’s most populous country.
Obasanjo’s made the call at the 9th Agrofood & Plastprintpack conference in Lagos recently, where he said farmers in the country were yearning for consistency in policy and single-digit interest loans to drive growth in the sector and attain food security.
“Policy sustainability and predictability is what farmers want. It helps them to plan. Availability of finance is also what farmers want. They cannot survive on the double digital interest rate”, Obasanjo, who is also a farmer, said at the conference.
According to him, food and nutrition security start with availability, then affordability by ensuring that everyone who needs food can get it.
He noted that food was one of the major imperatives in life, adding that “there cannot be food without agriculture and agribusiness”.
Obasanjo further stressed the importance of agriculture in changing the fortunes of the economy, with attendant exponential gains by way of earnings, employment, food security and other spin-offs.
He noted that agriculture must be made attractive to the country’s teeming youth population, saying this would address the rising unemployment, worsening insecurity and youth migration through the Mediterranean.
“We have to make agriculture attractive to the youths. We have to think within and outside the box to make it attractive to the youths so they are willing to get their hands dirty and feet wet”, he advised.
He continued that “Part of the security issue is owing to our inability to get them engaged. The need for agro-food and agribusiness is for food security, employment, wealth creation and income generation, particularly foreign exchange”.
Speaking also, Wouter Plom, the ambassador of the Kingdom of the Netherlands, said his country had faced challenges similar to those Nigeria confronts – feeding a growing population with limited resources.
He said as partners with a joint vision, the Netherlands and Nigeria recognise that the agricultural sector was one of the prominent drivers for economic growth.
He noted that the Netherlands has further strengthened its partnership with Nigeria to boost the agriculture sector in three main areas- economic growth, improved diets and youth employment.
The ambassador noted that all the challenges in driving growth through the sector, improving diets and tackling unemployment can be addressed when food production is efficient.
Paul Maerz, Managing Director of Fairtrade Messe, said with more investment in agro-food & plastprintpack solutions, products and technologies, brighter days were ahead for Nigeria’s agriculture.
Business
Abuja Farmers, Others Lose N12bn To Ginger Disease
The Federal Government, has confirmed the outbreak of ginger blight epidemic in four States in Nigeria, saying ginger farmers have lost over N12 billion due to the disease.
The government disclosed this at the inauguration of the National Ginger Blight Epidemic Control Taskforce in Abuja, revealing that the fungal disease had inflicted significant damage on ginger farms in Kaduna, Nassarawa Plateau and the Federal Capital Territory.
The Minister of State for Agriculture and Food Security, Aliyu Abdullahi, said the blight had caused billions of naira in losses, impacting not only the livelihoods of farmers, but also Nigeria’s position as the world’s second-largest ginger producer.
“Our preliminary estimates suggested that affected farmers in southern Kaduna lost over N12bn.
“Furthermore, considering that over 85 per cent of Nigeria’s ginger cultivation occurs in this region, we can safely assume a substantial loss of cultivated land, potentially exceeding 70 per cent of total land”, he stated.
Abdullahi, however, stated that the Federal Government through the National Agricultural Development Fund would launch a N1.6bn recovery package for affected farmers in ginger-producing areas.
He said the ginger blight epidemic served as a stark reminder of the importance of preparedness in safeguarding agricultural resources, adding that by investing in research, extension services and farmer support systems, “we can build a more sustainable future for our agricultural sector”.
On his part, the Chairman of the task force committee, Abubakar Abdullahi, said there was no doubt that the blight on ginger had negatively affected the Gross Domestic Product earnings from this subsector.
“It is of necessity and great urgency that various subcommittees are put in place to forestall these negative effects”, he stated.
Abdullahi assured the minister of the commitment of the team to salvage the situation, as he pleaded with the minister to give the committee the power to co-opt members that would add value to the task force to discharge their duties efficiently and effectively.
-
News2 days ago
US Bans Underaged Children From Having Social Media Accounts
-
News2 days ago
Group Begins Mobilisation For Fubara
-
News7 hours ago
Navy Intercepts 193 Navy Intercepts 193
-
Sports6 hours ago
Arsenal Must Beat City To Shake Off Tag – Rice
-
News4 days ago
‘God Sent Fubara To Liberate Rivers People’
-
Nation4 days ago
Ebonyi Community Petitions Nwifuru, Police Over Insecurity
-
Sports2 days ago
Ilechukwu Eyes NPFL Title After Win Against Heartland
-
Rivers12 hours ago
Indorama’s Jossy Nkwocha Wins Environmental Sustainability Award