Central Bank of Nigeria has stepped up its scrutiny of lenders and foreign-exchange bureaus, marking the latest effort to ease a dollar shortage that has sapped the naira.

CBN ordered Wema Bank Plc to stop foreign currency-secured naira loans – a practice it said drains dollar liquidity – according to instructions seen by Bloomberg. It gave the lender until Sept. 7 to comply.

A spokeswoman for Wema Bank didn’t immediately respond to calls seeking comment.

It has been trying to find ways to stem volatility in the naira, which has lost 40% in value since President Bola Tinubu announced currency reforms shortly after taking office on May 29.

Last week it capped the rate at which forex bureaus can transact in the currency at plus-or-minus 2.5% of the official market-weighted average from the previous day. It warned those who fail to obey its instructions will lose their licenses.

“What the central bank is trying to do is close as many opportunities for speculation and hoarding as possible, so people will bring out their dollars to the market,” said Ayodeji Dawodu, head of Africa sovereign and corporate credit research at BancTrust & Co. in London. “However, what they need to tackle is the reason why people are hoarding and speculating, and that’s because of lack of confidence in the central bank’s ability to support the naira with reserves,” he said.

The naira has suffered persistent volatility since Africa’s most populous nation eased foreign-exchange controls as it sought to simplify its exchange-rate regime and kick-start dollar flows.

In addition, the central bank’s financial statements released this month showed that effective foreign-exchange reserves at its disposal were much lower than previously disclosed.

The local unit traded at 770.72 per dollar at the official market on Tuesday, according to Lagos-based FMDQ OTC Securities Exchange, which oversees the trading. At that level, it is 15% weaker compared to the exchange rate of 906 a dollar at the parallel market, which is where most residents access the greenback because of shortage at banks.

“If you don’t have reserves and you’re going to boost confidence, it’s not going to work,” Dawodu said. “We know the central bank doesn’t have enough to satisfy the market.”

Bloomberg

A case of procurement fraud against suspended and detained central bank governor Godwin Emefiele stalled on Wednesday and no new date was fixed for the hearing.

Emefiele was meant to enter a plea on Wednesday. But he did not appear in court and his case was not listed on the court's cause-list.

The suspended CBN governor faces a 20-count charge of unlawful procurement and conferring unlawful advantage to a central bank employee.

Several newspapers on Wednesday reported that Emefiele was exploring a plea bargain to settle the matter out of court.

Emefiele was suspended by President Bola Tinubu in June and later detained by state police.

Reuters

Between July 2022 and June 2023, 3,620 people were abducted in over 582 kidnapping incidents in the country, with a reported ransom demand of at least N5 billion and an actual ransom payment of over N302million, a figure that could be higher due to underreporting.

An SB Morgan intelligence report released on August 23, 2023, entitled, “The Economics of Nigeria’s Kidnap Industry: Follow the Money,” disclosed these figures.

Nigeria Police Force and the military high command – the Defence Headquarters, however, have gone silent over the heart-wrenching situation, while security experts called on the Office of the National Security Adviser currently headed by the former Chairman of the Economic and Financial Crimes Commission, Nuhu Ribadu, to declare a state of emergency to curb the disturbing situation.

As Nigeria faces security crises across the six geopolitical zones, Boko Haram, Islamic States of West Africa, Ansar terrorists, bandits, sea pirates, and armed separatist agitators – the Independent People of Biafra, and all other violent groups, take part in kidnapping for ransom, even with the country’s struggling economy, rising inflation, and high unemployment rates.

Civilians bear the brunt of this horrifying trend, accounting for 430 fatalities. Security agents and kidnappers themselves suffered 19 and 121 deaths, respectively. Inability of security agencies to effectively curb this menace is evident, as even the killing of kidnappers has not deterred potential abductors.

The SB Morgan intelligence report delves into the harrowing statistics, motivations, and complexities of the growing epidemic. The report unveils a striking correlation between Nigeria’s struggling economy, rising inflation, and soaring unemployment rates and the exponential growth of the kidnap-for-ransom industry.

“Between July 2022 and June 2023, 3,620 people were abducted in 582 kidnap-related incidents in the country, with a reported ransom demand of at least N5 billion and actual ransom payments of N302 million. However, this figure could be higher due to underreporting.

“Kidnap dynamics differ between individual and community cases, with less secrecy in larger-scale abductions. In some instances, kidnappers opt for non-monetary ransom, like foodstuff. Notably, the Northwest and Northcentral regions exhibit higher in-kind cases of ransom demands, correlating with Nigeria’s widespread poverty. Additionally, these regions have seen a surge in demands for motorcycles as part of ransom payments,” the report said in part.

It further noted that Catholic priests, previously targeted for their ransom value, suffered 21 abductions during this period.

It further delves into the geographic nuances of kidnapping, identifying Edo State as a state with high ransom demands but minimal returns. Taraba State, however, stands out for high ransom payments, though these numbers stem largely from a single incident. Zamfara, Kaduna, and Niger states were identified as hotspots for kidnapping, often involving mass community abductions. In contrast, Borno recorded minimal deaths, likely due to the sophistication of Boko Haram’s tactics.

It added, “Kaduna was the most dangerous state for priests, who were often kidnapped during services. Abductors demanded around N50 million in the past, but the Church now refrains from disclosing ransom negotiations possibly to avoid encouraging further attacks. Statewise, Edo kidnappers sought high ransoms but received little. On the other hand, Taraba paid the most, primarily due to a single case.

“The Northcentral saw higher ransom amounts demanded, notably in Nasarawa, where targeted abductions yielded maximum ransom with minimal resistance. The South-South’s low ransom payments may indicate efficient police intervention or victim silence. The past year showed a higher likelihood of being kidnapped in Kaduna, Niger, or Zamfara, the three states recording the highest per capita abduction rates and deaths during kidnap attempts. Civilians bore the brunt of kidnap attempts around the country, with 430 casualties, while security agents and kidnappers accounted for 19 and 121 deaths, respectively.”

When contacted, the Force Public Relations Officer, and the Director, Defence Information, CSP Olumiyiwa Adejobi, and Brig. Gen. Tukur Gusau, respectively, did not respond to phone calls, SMS and WhatsApp messages by our correspondent on Wednesday night.

Punch

Lagos State Police Command has expressed worry over the fabrication of various types of firearms, which include local and foreign pistols, AK-47 and other assault rifles in Lagos.

This was disclosed by the command boss, Idowu Owohunwa, during the acting Inspector General of Police, IGP Kayode Egbetokun’s tour of duty to Lagos, yesterday.

Owohunwa, who noted that Lagos State presented distinctive security challenges on account of its demography and socio-economic interplays, said its internal security space in recent times had been laced with the threats of cultism, armed robbery, kidnapping, murder and sexual and gender-based violence.

He said the command was also confronted with the challenge of dissecting and dealing with the thin line between the civil and criminal dynamics of land disputes, which are also prevalent in the state.

Crime profile of the state, according to him, “is further accentuated by the prevalence of illegal firearms proliferation, and illicit drug abuse and trafficking.

“Hardly does a day passes by without the ever vigilant operatives of the command recovering weapons and illicit drugs of various descriptions at stop and search points, raids of black spots, and other operational engagements with all such recoveries linked to the perfection of crimes across the State.

“Most worrisome in all these is a noticeable trend that indicates an increasing local expertise in the fabrication of various types of firearms including replicas of foreign made pistols, AK47 and other assault rifles.

“This trend, coupled with the threat of cultism, projects a potent danger to the security space of Lagos State.”

“Also of routine concern is the traffic gridlock and the attendant occasional traffic robberies, which are compounded by on-going road projects across the state including, in particular, the Lagos-Ibadan highway.”

He hinted that in cognizance of the situation, the command was planning to organise a conference soon, with the intent to mainstream the discourse on cultism and violent crimes in Lagos, as well as to galvanise all strategic stakeholders and the different levels of governance in the state to the evolving threat.

Vanguard

An Embraer Legacy 600 executive jet, believed to have carried Wagner mercenary chief Yevgeny Prigozhin to his death on Wednesday, showed no sign of problem until a precipitous drop in its final 30 seconds, according to flight-tracking data.

Rosaviatsia, Russia's aviation agency said Prigozhin, who led an aborted mutiny in June, was one of 10 people on board the downed plane. It was traveling from Moscow to St. Petersburg when it crashed near the village of Kuzhenkino in the Tver Region, Russia's emergency situations ministry said.

At 3:19 p.m. GMT, the aircraft made a “sudden downward vertical,” said Ian Petchenik of Flightradar24. Within about 30 seconds, the aircraft had plummeted more than 8,000 feet from its cruising altitude of 28,000 feet.

“Whatever happened, happened quickly,” Petchenik said.

“They may have been wrestling (with the aircraft) after whatever happened," Petchenik said. But prior to its dramatic drop, there was "no indication that there was anything wrong with this aircraft.”

Video showed the plane descending rapidly with its nose pointing almost straight downward and a plume of smoke or vapor behind it.

Russian investigators opened a criminal probe to determine what happened. Some unnamed sources told Russian media they believed the plane had been shot down by one or more surface-to-air missiles. Reuters could not confirm that.

Brazilian planemaker Embraer SA said it had not been providing any service or support in recent years to the plane, which seats around 13.

The company said in a statement it has complied with international sanctions imposed against Russia. The luxury jet was identified on Flightradar24 with registration RA-02795, the same as the plane that carried Prigozhin to Belarus after the mutiny, an industry source familiar with the matter said.

Online flight tracker Flightradar24 last recorded the position of the aircraft at 3:11 p.m. GMT, before the crash. Jamming or interference in the area probably slowed the collection of further location data.

Other data continued for nine minutes. Flightradar24 said the jet went thorough a series of ascents and descents of a few thousand feet each over 30 seconds before its final, disastrous plunge. Flightradar24 received its final data on the jet at 3:20 p.m.

Reuters

WESTERN PERSPECTIVE

Ukraine says Russia lost two bombers in attacks on airfields

Ukraine's intelligence chief Kyrylo Budanov said recent attacks on Russian airfields had destroyed two TU-22 bombers and damaged two more bombers.

"Two were destroyed, two were damaged. Two can not be repaired," Budanov said in a TV interview on Wednesday night for the Ukrainian service of Radio Free Europe/Radio Liberty.

He said a fifth Russian aircarft could have been hit.

Russian officials reported drone attacks on military airfields Soltsy in the Novgorod region on Saturday and Shaykovka in the Kaluga region on Monday and said that one warplane was damaged during the first attack.

On Tuesday, British military intelligence said that Russia was likely to have lost a nuclear-capable TU-22M3 supersonic long-range bomber in the attack on Soltsy.

Budanov said that his intelligence agency was in direct contact with people who attacked the airfields.

"These were people who carried out certain tasks from the Russian territory," he said.

A spokesperson for the Ukrainian intelligence said this week that the agency coordinated the attack on the Shaykovka airfield.

** EU military chief casts doubt on Ukraine regaining territory

The European Union's military leadership has expressed doubts that Ukraine will regain any territory lost in the war with Russia, according to German newspaper Die Welt.

"It remains questionable whether Ukraine's full sovereignty can be restored with the resources available," said Robert Brieger, chairman of the European Union Military Committee (EUMC), the highest military body in the EU which is composed of the 27 member states.

Regarding the Ukraine's counter-offensive, which has been ongoing since June, Brieger said he would be "cautious to expect a breakthrough of the Ukrainian forces through the Russian defence lines."

RUSSIAN PERSPECTIVE

Ukraine crisis caused by Western attempts to preserve hegemony – Putin

Attempts by the West to maintain its hegemony are the main cause of the conflict in Ukraine, Russian President Vladimir Putin has claimed. He added that members of the BRICS group of nations unanimously reject the idea of exceptionalism.

“We are against any hegemony, the notion of exceptionalism promoted by some nations, and the policy of neocolonialism derived from that claim,” the Russian leader said on Wednesday during a speech via video link to a summit of BRICS leaders in South Africa.

The BRICS group, which includes Brazil, China, India, Russia, and South Africa, firmly believes in “the formation of a multipolar world order, truly just and based on international law,” Putin stated.

Explaining the origins of the Ukraine crisis, Putin accused Western powers of facilitating the “anti-constitutional coup” in Kiev in 2014. After seizing power, the new Ukrainian authorities “unleashed a war” against those who rejected them, Putin said.

“Our actions in Ukraine have but one motive: to put an end to this war that the West and its satellites in Ukraine started against the people living in Donbass,” the president stressed.

He conveyed Moscow’s gratitude to BRICS members, which he said are working to resolve the situation “in a fair way through peaceful means.”

Russia deployed troops against Ukraine in February 2022, stating that its goals were to stop Kiev’s attacks on Donbass, ensure Ukrainian military neutrality, and eliminate radical nationalist forces. The US and its allies have claimed that Moscow’s military action was “unprovoked,” and have pledged to arm and fund Kiev for “as long as it takes” to defeat Russia.

Moscow has identified NATO’s expansion in Eastern Europe and particularly its increasing influence in Ukraine as a major threat to Russian national security. In 2021, the Russian government sought to negotiate with the West to address those concerns, but its efforts were rejected.

** Two Ukrainian drones shot down above Russia’s Bryansk Region — defense ministry

The Kiev government has sent two drones to attack facilities in Russia, but Russian air defenses shot them down above the western Russia’s Bryansk Region late on Wednesday, the Russian Defense Ministry told reporters.

"An attempt by the Kiev regime to carry out terrorist attacks using fixed-wing unmanned aerial vehicles was foiled at around 10:00 p.m. Moscow time [on Wednesday]," the ministry said.

"Two Ukrainian UAVs were detected and destroyed by air defense systems over the territory of the Bryansk Region," it said.

Reuters/RT/Tass

In the aftermath of the recent pandemic, which caused many businesses to close, a new raft of business workers and entrepreneurs are deciding to pursue their own dreams of being a new business owner, and controlling their own destiny. 

The cost of entry has never been lower, with new tools to create your own website, and free social media to get your message out everywhere.

Of course, starting and running your own business comes with financial and personal risks, so I always recommend that you do your homework first, and follow some tried and proven strategies to improve your odds of success. 

Based on my own experience as a mentor and angel investor, I find that as many as 90 percent of startups fail in the first five years, despite their best efforts.

To keep you out of this statistic, I recommend the following steps to all aspiring business owners as they step into this new and exciting world of managing your own business.

1. Solidify your funding plan before you start spending

By far, the majority of new businesses I know are self-funding (bootstrapped) from the founder's own savings and prior assets. The rest use outside funding, including crowdfunding, friends and family, banks, and investors. Explore multiple sources based on your level of need and risk.

The key is not to expect any magic or entitlement here. We all see reports of venture capitalists who invest millions in new businesses, but be assured that these investments come only after you have a proven base business, and have a case for scaling it quickly.

2. Pick a name, location, and marketing strategy early 

Names and taglines are critical to success. Make sure the name and trademarks you want are available, as well as the website address, social media tags, and any other intellectual property. These are necessary to attract customers, and investors, and give you a line of defense against competitors.

I can't emphasize enough how important a name can be. Some of us can still remember notable costly mistakes, like the Chevy Nova, many years ago from GM. Pundits in Latino countries quickly pointed out that the Spanish phrase no va means 'does not go' in English.

3. Do a written business plan to validate your thinking

Even if your plan seems simple and intuitively obvious to you, writing it down and having it reviewed by experienced friends will moderate your passion and assure you that all key elements are addressed. Scribbled notes on the back of a napkin and talking louder won't reduce the risk.

4. Test your plan to get feedback from real customers

Use social media or reward target customers to volunteer for a feedback session. If an innovative solution is involved, prepare a minimum viable product or a video to demonstrate functionality and usability. It's much easier to pivot before full production and much money has been spent.

5. Establish a visible and positive public image and brand

Use social media, industry shows, expert contacts, and social media influencers to establish a memorable brand even before you roll out your business. It helps to advertise your new presence with a grand opening, viral video, and traditional advertising to highlight entry into the arena.

6. Network extensively for partners, investors, and suppliers

These days, you can't start and run a business alone. Utilize all the avenues for networking, including industry conferences, investor meetings, peer gatherings, and local civic organizations, to make your presence and value known. Giving is the best way to get the support you need.

7. Build a capable team of skilled business professionals

Successful business teams today extend beyond face-to-face employees, to include freelancers and remote jobs. Do some real recruiting, excluding friends and family, to find the right players. Don't forget online recruiting tools, as well as local colleges for applicants with the right skills for you.

8. Define key metrics to measure progress and success 

Set milestones and targets for revenue, profitability, and market share, and use these to manage the business, as opposed to hours worked and gut instinct. Take advantage of inexpensive tools to gather data and provide analytics. Use comparable metrics for managing team member results.

In my experience as a business adviser, I still see too many businesses started in the heat of the moment over career frustration or passion for a specific solution Be aware that running your own business can be equally frustrating, and failure consequences can be drastic. 

But if you do it right, the joys and satisfaction, as well as financial returns, of your success can't be beaten. 

Inc

Russian mercenary chief Yevgeny Prigozhin was listed as a passenger on a private jet which crashed on Wednesday evening north of Moscow with no survivors, the Russian authorities said.

There was no confirmation that Prigozhin was physically on board and Reuters could not immediately confirm that he was on the aircraft, which crashed north of Moscow.

"An investigation has been launched into an Embraer plane crash that occurred tonight in the Tver region. According to the passenger list, the name and surname of Yevgeny Prigozhin is among them," Rosaviatsia, Russia's aviation agency, was cited as saying by the state TASS news agency.

Russia's emergency situations ministry said in a statement that a private Embraer Legacy aircraft travelling from Moscow to St. Petersburg had crashed near the village of Kuzhenkino in the Tver Region.

It said that 10 people had been on board, including three crew members. According to preliminary information, everyone on board had been killed, it said.

Prigozhin, 62, spearheaded a mutiny against Russia's top army brass on June 23-24 which President Vladimir Putin said could have tipped Russia into civil war.

The mutiny was ended by negotiations and an apparent Kremlin deal which saw Prigozhin agree to relocate to neighbouring Belarus. But he had appeared to move freely inside Russia after the deal nonetheless.

Prigozhin, who had sought to topple Defence Minister Sergei Shoigu and Valery Gerasimov, chief of the general staff, on Monday posted a video address which he suggested was shot in Africa.

Reuters

The gap between the maximum lending rate and savings deposit rate in the banking sector widened by 22.14 per cent in July.

Banks savings deposit rate rose slightly to 5.24 per cent in July from 5.18 per cent and 5.13 per cent in June and May, according to figures from Central Bank of Nigeria.

Figures obtained on money market indicators from the apex bank also revealed that the maximum lending rate fell slightly to 27.38 per cent in July, from 28.94 per cent in June.

The CBN revealed that prime lending rate rose to 13.98 per cent in July from 13.85 per cent in June.

It revealed that 12-month, six-month, three-month, one-month deposit rate, and savings deposit rate in July were 7.83 per cent, 8.54 per cent, 7.68 per cent per cent, 7.15 per cent and 5.18 per cent respectively.

Treasury bills rate rose to 4.45 per cent in July, from 3.87 per cent in June.

The monetary rate and inter-bank call rate were 18.75 per cent and 6.73 per cent respectively.

At the last Monetary Policy Committee meeting in July, the Acting Governor, CBN, Folashodun. Shonubi, said after the meeting, members decided to “Raise the MPR by 25 basis points, from 18.50 to 18.75 per cent; Adjust the asymmetric corridor to +100/-300 basis points around the MPR; Retain the CRR at 32.5 per cent; and retain the Liquidity Ratio at 30 per cent.”

He said, the committee remained cautious in arriving at a policy decision as members noted the need to continue to support investment which will ultimately lead to the recovery of output growth.

The balance of these arguments, he noted, was in favour of a moderate rate hike, to sustain efforts at anchoring inflation expectation, narrow the negative real interest rate gap, and improve investor confidence.

Punch

British police said on Tuesday they had charged former Nigerian oil minister Diezani Alison-Madueke with bribery offences, saying they suspected she had accepted bribes in return for awarding multi-million pound oil and gas contracts.

Nigeria, Africa's most populous nation and top oil producer, has one of the most corrupt political systems in the world and its former colonial ruler Britain has been a destination of choice for Nigerian kleptocrats seeking to enjoy their wealth.

Alison-Madueke, 63, served as petroleum minister from 2010 to 2015, under former President Goodluck Jonathan. She also acted as president of the Organization of the Petroleum Exporting Countries (OPEC) in 2014-2015.

"We suspect Diezani Alison-Madueke abused her power in Nigeria and accepted financial rewards for awarding multi-million pound contracts," said Andy Kelly, Head of the National Crime Agency's (NCA) International Corruption Unit.

"These charges are a milestone in what has been a thorough and complex international investigation."

Alison-Madueke was arrested in London in October 2015, a few months after leaving office, and has also been the subject of investigations in Nigeria and the United States.

She has previously denied allegations of corruption but could not be reached on Tuesday. A London lawyer who was acting for her in 2015 did not immediately respond to a request for comment.

The NCA said she was currently living in St John’s Wood, an upmarket area of west London, and would appear at Westminster Magistrates' Court on Oct. 2.

It said Alison-Madueke was accused of benefiting from at least 100,000 pounds ($127,000) in cash, chauffeur-driven cars, flights on private jets, luxury holidays for her family, and the use of multiple London properties.

Charges against her also detail financial rewards including furniture, renovation work and staff for the properties, payment of private school fees, and gifts from high-end designer shops such as Cartier jewellery and Louis Vuitton goods, the NCA said.

It added that assets worth millions of pounds relating to the alleged offences had been frozen, and that it had provided evidence to the U.S. Department of Justice that enabled them to recover assets worth $53 million linked to Alison-Madueke.

Nigerian courts have also ordered the seizure of tens of millions of dollars' worth of assets including properties, cars, large quantities of jewellery and a gold iPhone in a series of rulings in recent years.

News of the British charges comes a month after a London court ordered the confiscation of $130 million from a former Nigerian oil state governor, James Ibori, in an unrelated but equally high-profile case involving political corruption in Nigeria.

With its highly developed legal and financial industries and lucrative property market, Britain is a global money-laundering hub and the NCA's anti-corruption unit is part of the authorities' effort to stem the tide of dirty money.

($1 = 0.7853 pounds)

Reuters