Economy

CBN Suspends Heritage Bank License

Published

3 months ago

June 3, 2024

The Central Bank of Nigeria (CBN), has revoked the banking licence of Heritage Bank Plc with immediate effect.

This, the apex bank said is in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020

A statement by the Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali (Mrs.) said that Heritage Bank Plc was suspended from carrying out banking operations because it breached Section 12(1) of Banking and Other Financial Institutions Acts (BOFIA) 2020 and the failure of its management to improve its financial performances.

“This action has become necessary due to the bank’s breach of Section 12 (1) of BOFIA, 2020. The Board and Managemen of the bank have not been able to improve thebank’s financial performance, a situation which constitutes a threat to financial stability. This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

“Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.

Consequently, the CBN has taken this action to strengthen public confidence in the banking system and ensure that the soundness of our financial system is not impaired, ” the statement clarified.

It continued, “The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

“We wish to assure the public that the Nigerian financial system remains on a solid footing. The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system.

Economy

Local Government Autonomy: FG Sets Up Committee on Enforcement

Published

3 weeks ago

August 20, 2024

Sunrise Nigeria

By Sule Musa

The Secretary to the Government of the Federation (SGF), Senator George Akume, CON, has inaugurated an Inter-Ministerial Committee to enforce the Supreme Court judgement delivered on 11th July, 2024 granting financial autonomy to Local Governments in Nigeria.

A statement by Segun Imohiosen, Director, Information & Public Relations in the office of the SGF said the members of the committee include:

1. Secretary to the Government of the Federation – Chairman

2. Hon. Minister of Finance & Coordinating Minister of the Economy -Member

3. Attorney General of the Federation & Minister of Justice – Member

4. Hon. Minister of Budget & Economic Planning

5. Accountant General of the Federation

6. Governor, Central Bank of Nigeria

7. Permanent Secretary (Federal Ministry of Finance)

8. Chairman, Revenue Mobilization Allocation & Fiscal Commission

9. Representative of State Governors

10. Representative of Local Governments

According to the statement, the committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.

Inaugurating the committee, the Secretary to the Government of the Federation, and Chairman of the Committee, Senator George Akume, this move is in line with President Bola Ahmed Tinubu’s efforts to ensure appropriate implementation to the provisions of the Constitution, which recognizes local governments as the third tier of government.

Economy

Breakdown of FAAC’s N1.358tn July allocation to FG, states, LGs

Published

3 weeks ago

August 18, 2024

Sunrise Nigeria

The Federation Account Allocation Committee said it disbursed N1.358.075 trillion to the three tiers of Government in Nigeria as July allocation.

The was contained in a statement by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga on Friday.

The disbursed N1.358.075 stems from the total gross N2,613.791 trillion revenue generated in July 2024.

In the period under review, the distributable allocation comes from Statutory Revenue of N161.593 billion, Value Added Tax revenue of N528.307 billion, N18.818 billion from Electronic Money Transfer Levy (EMTL), N581.710 billion from Exchange Difference and N13.647 billion.

The federal government received N431.079 billion, states got N473.477 billion, local government councils got N343.703 Billion, while the oil-producing states received N109.816 billion, representing 13 percent derivation or mineral revenue.

This is a slight increase from the figure distributed in June, which stood at N1.354 trillion.

A further analysis of July’s allocation showed that the sum of N99.756 billion was given for the cost of collection by the Government’s revenue-generating agencies, while N109.816 billion was allocated for transfer intervention and refunds.

Business

CBN Approves Merger of Unity and Providus Banks

Published

1 month ago

August 7, 2024

Sunrise Nigeria

The Central Bank of Nigeria (CBN) on Tuesday announced the approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and the Providus Bank Limited.

The Apex Bank, in a statement by its acting Director of Corporate Communications, Hakama Sidi-Ali, said the move is designed to bolster the stability of the nation’s financial system and avert potential systemic risks.

“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders,” the statement read.

“It is unequivocal to state that the CBN’s action is under the provisions of Section 42 (2) of the CBN Act, 2007. This arrangement is crucial for the financial health and operational stability of the post-merger organisation.

“It is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.”

The CBN said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.