Nation
Virtual Assets, Cryptocurrencies Risky For Nigeria, ICPC Warns
The Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye, SAN, yesterday, said virtual assets and cryptocurrencies are risky for implementation in Nigeria.
Owasanoye made this known in his presentation to the Senate Committee on Banking, Insurance and Other Financial Institutions during its hearing on the Central Bank of Nigeria’s decision to stop financial institutions from transacting in cryptocurrencies and matters arising therefrom.
He said, “Virtual and cryptocurrencies pose serious legal and law enforcement risks for Nigeria. The current National Identification Number registration and linking with SIM cards is a pointer to the fact that insurgents, terrorists, kidnappers, bandits, and drug merchants have used the anonymity of unregistered SIM cards to commit their crimes with relative ease.
“Cryptocurrencies guarantees similar anonymity and can easily be used as leverage for terrorist financing and other crimes. With the NIN registration, cryptocurrencies may become an alternative payment platform for kidnappers, and this would be impossible for law enforcement agencies to trace.”
The ICPC boss cited a case study of a current investigation by the commission on money laundering involving several hundreds of millions of naira.
According to him, “The main suspect used technology in placing the money in the banking sector. A sizable amount was traced to several bank accounts but before investigators recovered some of the money, a large proportion had been made to disappear using serpentine ICT-aided transfer schemes that has so far eluded investigators.
“While the persons whose accounts were used have been located, the criminal mastermind has remained invisible and unidentified.
“This real ongoing case is a glimpse into the world of anonymity of virtual or digital transactions. With cryptocurrencies, the wallet of the user of cryptocurrency system only store information or encrypted links in the Blockchain where transaction confirmation can be found.
“There is no movement of any ‘currency’ in the real sense of the word. By their very nature, they provide considerable anonymity that is almost impossible to be accessed by unauthorized persons, including law enforcement authorities.”
Owasanoye identified the use of virtual assets and cryptocurrencies for criminal activities as a major risk associated with them.
“The use for criminal activities is the most obvious risk of virtual assets and cryptocurrencies. It has been reported that ‘criminally associated bitcoin addresses sent over $3.5billion worth of bitcoin in 2020’.
“This figure includes BTC addresses controlled by dark markets, ransomeware actors, hackers, and fraudsters. Most of this bitcoin will ultimately need to be laundered by these criminals, meaning it will make its way to an exchange where it can be converted to fiat currency and transferred to a bank,” the ICPC chairman said.
He also listed other risks of the use of virtual assets and cryptocurrencies to include: risk to finance of government, risk of theft of cryptocurrencies, abuse as medium of payment for hackers and ransomeware, risk of exit scams, risks of use of crypto assets for ponzi schemes, risks of tax evasion, and risk as a source of corruption-linked illicit financial flows.
He further noted that the Central Bank of Nigeria’s ability to regulate monetary policy will be lost due to the fact that cryptocurrencies are issued by private entities, which are foreign, and not issued or regulated by the bank.
“It is plausible that we cannot wish virtual assets away. Central Banks in many jurisdictions are considering floating officially recognized cryptocurrencies. Whether the time is right for the Central Bank of Nigeria to follow suit is anybody’s guess, but legal guidance is needed if any fresh initiative in that direction is to have legal force,” he added.
Nation
SIM-NIN: Subscribers Kick Against Today’s Deadline, Demand Extension
The National Association of Telecommunications Subscribers has requested that the Nigerian Communications Commission extend the deadline scheduled for the disconnection of telephone lines not linked to National Identification Numbers beyond Friday, March 29, 2024.
The subscribers’ body argued that telco agents were failing to capture all necessary information needed for verification, just as it also cited difficulties in uploading the captured data on the National Identity Management Commission’s server.
The President of NATCOMS, Adeolu Ogunbanjo, told The Tide’s source last Wednesday that NCC needed to order telcos not to disconnect telephone lines, considering the ongoing difficulties faced by subscribers.
The telecom regulator had insisted that there would be no changes to the deadline for the next phase of disconnection
The disconnection process was rolled out in stages, with the second phase scheduled for March 29, 2024, following the initial phase that occurred on February 28, 2024.
The third phase is slated to commence on April 15, 2024, as previously announced.
Earlier, the Director of Public Publicity at the NCC, Reuben Mouka, told The PUNCH, “We issued a publication that you can refer to. We specified certain deadlines and stipulated that subscribers who do not comply with the directive would be barred. And that has not changed.”
The National Association of Telecommunications Subscribers has requested that the Nigerian Communications Commission extend the deadline scheduled for the disconnection of telephone lines not linked to National Identification Numbers beyond Friday, March 29, 2024.
The subscribers’ body argued that telco agents were failing to capture all necessary information needed for verification, just as it also cited difficulties in uploading the captured data on the National Identity Management Commission’s server.
The President of NATCOMS, Adeolu Ogunbanjo, told the source on Wednesday that the NCC needed to order telcos not to disconnect telephone lines, considering the ongoing difficulties faced by subscribers.
The telecom regulator had insisted that there would be no changes to the deadline for the next phase of disconnection
The disconnection process was rolled out in stages, with the second phase scheduled for March 29, 2024, following the initial phase that occurred on February 28, 2024.
The third phase is slated to commence on April 15, 2024, as previously announced.
Earlier, the Director of Public Publicity at the NCC, Reuben Mouka, told the source, “We issued a publication that you can refer to. We specified certain deadlines and stipulated that subscribers who do not comply with the directive would be barred. And that has not changed.”
At the last deadline on February 28, 2024, about 40 million lines that were not linked to NIN were barred.
The NATCOM president said before the first deadline, subscribers had appealed to the NCC for a one-month extension.
However, the NCC explained that there was no issue as the process was designed to occur in phases.
According to the president, the Operator’s Consumer Centre stands as the primary location for consumers to complete their registration fully, with data provided there being verifiable.
However, the president noted that telecom agents were bypassing crucial information during the registration process, resulting in incomplete registrations of subscribers.
“For example, during interactions with telecom representatives, some agents fail to collect all required the information from subscribers.
“If a subscriber cannot provide certain details, agents often leave the registration incomplete. Consequently, these incomplete registrations are deemed unverifiable,” he said.
Further, Ogunbanjo noted that NIMC also shares responsibility in this process.
He said the challenges often arise when telecom companies attempt to upload collected data on NIMC’s server, owing to network issues.
“These network difficulties, beyond the control of subscribers, hinder the timely completion of the registration process,” he said.
“NIMC’s inadequate network infrastructure exacerbates the problem. While they intend to accept data uploads, technical issues prevent them from doing so effectively.
“We urge the NCC to address NIMC’s shortcomings, improve their services, and acknowledge that meeting the deadline will be challenging given the current issues,” the president added.
NIMC is a statutory Nigerian organisation that operates the country’s national identity management systems.
NIMC’s enrollment figures as of December 31, 2023, stand at over 104.16 million unique records.
About 530,345 Nigerians in Diaspora have gotten NINs. 59.12 million male and 45.04 million female Nigerians have NINs.
When The PUNCH reached out to NIMC for comments on technical glitches, the Head of Corporate Communications, Kayode Adegoke, clarifies that the commission’s server has consistently remained operational, debunking reports suggesting otherwise.
He emphasizes that the NIMC’s services are fully functional and accessible to all users
“Our server has never been down. You can go to the various NIN centres and confirm.
Adegoke further explained the process for subscribers to link their NIN to their SIM cards,
“These individuals only need to submit their NIN and complete the verification process through their respective telcos providers.
He encouraged those who have not yet obtained their NIN to visit any NIMC centre for enrollment.
Adegoke assured Nigerians that upon enrollment, individuals can expect their NIN to be available within three hours.
However, for those requiring corrections, such as rectifying date of birth errors, the process may take up to 72 hours.
Last week, the National Identity Management Commission and the NCC issued a joint statement unveiling a strategic partnership aimed at simplifying the NIN-SIM linkage procedures for telecommunications subscribers nationwide.
Both agencies reaffirmed their dedication to enhancing the processes involved and improving efficiency regarding the NIN and SIM card linkage initiative.
They acknowledge the importance of this initiative in bolstering security measures and enhancing service delivery across the country.
The SIM-NIN linkage initiative is a crucial step towards improving the integrity of subscriber data and enhancing security measures within the telecommunications industry.
The NIN-SIM linkage policy was initially introduced by the Nigerian government in December 2020. This directive requires all telephone line users in Nigeria to associate their SIM cards with their NIN.
In December of the previous year, the NCC issued a directive stipulating that all telecommunications operators in Nigeria, including major providers like MTN, Airtel, and Globacom, among others, must enforce complete network barring on all phone lines for which subscribers have not provided their NINs by February 28, 2024.
Barely two weeks ago, the Socio-Economic Rights and Accountability Project issued a warning to take legal action against the NCC if it does not revoke the directive instructing network providers to block the phone lines of individuals who have not linked their SIM cards to their NINs.
Nation
Reps Query N15bn Payment To Remita
The House of Representatives’ Public Accounts Committee has queried the N15billion payment made to Remita from the Office of the Accountant-General of the Federation for two years.
This is just as the committee accused the Central Bank of Nigeria and commercial banks of complicity in the sharing of the N15billion remittance.
The committee’s Chairman, Bamidele Salam, made the allegation at the resumed investigative hearing on revenue leakages in Abuja yesterday.
Remita is a payment solution that helps individuals and businesses make and receive payments, pay bills, and manage their finances.
The round table: Delta Bloodbath: Senate Meets Service Chiefs As Troops Comb Creeks.
Salam said that the Remita payment from the OAGF from 2016 to 2018 was questionable, adding that the OAGF paid the money without agreement or contract.
“The money is an illegal payment. There was no budget provision. So, where did they source the money from?” the chairman queried.
“If someone pays N150,000 as a Remita, you will pay 7.5 per cent Value-Added Tax in addition to it.
Salam said that the Remita payment from the OAGF from 2016 to 2018 was questionable, adding that the OAGF paid the money without agreement or contract.
“Ordinarily, that whole sum of VAT ought to go to the Federal Inland Revenue Service, but what they are doing in this transaction is that they will now add that VAT to the N150.000.
“They will add it up, gather the money together, and take it to the CBN,” he claimed.
He said, “System Spec and Remitta, both collecting revenue for the Federal Government, will share 50 per cent, while the banks and the CBN will also have their share.”
He said that by the time the committee finished its reconciliation, “I am very sure that hundreds of billions of naira will be the VAT component that was not remitted to FIRS.”
Salam stated that each bank ought to take the money and directly remit it to FIRS.
“Now, Remita is saying that each of those collecting the money will come and calculate the money that has been shared into shreds. Now, how do we track this kind of money? “he asked.
The Director, Banking Services, CBN, Mr.Ahmed Abdullahi, said it was necessary to source for an alternative way of remitting revenue, adding that Remita and System Spec were selected because they had been rendering similar services to banks.
The Chief Accountant, Treasury Single Account Department, Oyewole Adewale, representing the Accountant-General of the Federation, accused the CBN of not honouring its letters to reconcile the revenue accrued to the country through the Treasury Single Account.
He noted that the OAGF had developed a system where all revenue generated by the Ministries of Departments and Agencies of Government could now be monitored with little or no interference.
The Director, Remita Payment Services Ltd, Aderemi Atanda, while reading the summary of the TSA collection record, maintained that 10, 20, and 50 per cent were shared among CBN, commercial banks, and Remitta respectively.
Collections, he noted, often vary, saying, “In 2015.
Nation
Nigeria Needs Community-Driven Police, Not State Police -Shekarau
Former Governor of Kano State, Mallam Ibrahim Shekarau, has said that the country needs to adopt community-driven police rather than establish state police.
Shekarau noted that it would be more effective in addressing the current security challenges in the country.
The former minister of education spoke in Akure at the Federal University of Technology, Akure (FUTA) during the launch of a book titled ‘The Psychology of Growing Old: A Personal Experience for both Young and Old,’ written by Sehinde Arogbafa.
Shekarau argued that community police would be better controlled than state police as well as devoid of political and religious leaders’ influence.
He the involvement of communities in state policing would enhance trust, cooperation, and collaboration between the police and the citizens.
Shekarau argued that community police would be better controlled than state police as well as devoid of political and religious leaders’ influence.
He the involvement of communities in state policing would enhance trust, cooperation, and collaboration between the police and the citizens.
“I’ve been an advocate of community policing. It is different from what is being paraded as state police. Community policing means community watch.
“There is hardly any community in Nigeria that does not have what we call the vigilante group. All we need to do is the government should organise them, the government should own is up, and the government should promulgate a law.
“If I may give you an example of Kano, I’m sure you must have had experience with the Hisbah Guards; that is community watch. We set up a committee of 12 elders in every ward to do the selection of 20 responsible and respected young men for the Hisbah Guards. And we recruited them and mandated that the local government take charge of them. We’re paying them allowances. And they know everybody in the community.
“Within one to two years in Kano State, ask anybody; we don’t have any vices, no drugs, nothing in all the communities because that is community watch.
“We have over 10,000 Hisbah Guards in Kano; I did not nominate a single one; not a single party leader nominated one. It was all the elders in the community. The government created a law; we didn’t leave it in a vacuum. The number one assignment of the Hisbah Guards was to support and complement the work of all the Nigerian armed forces and the police. And they were working with them peacefully.
“Ask anybody in Kano today, and they will tell you that people prefer to report their cases to the Hisbah Guards office rather than even the police stations or even going to court. What we need in Nigeria is community watch, not just when you ask a state to create 2000 to 3000 state police bombarded by party thugs, and you will find out that you are going back to the same intimidation. There will be abuses by political leaders.
“But if you allow the communities to select with the backing of the government, the government will pay them all their allowances, provide vehicles for them, and support them, and there is a chain of command from the state to the local governments, to the wards, and even to the villages.
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