🫖 Turns out you can shame the shameless
Former military dictator, Ibrahim Badamasi Babangida thinks Nigeria's corruption is worse than it was in his time. He said the corruption index is all the proof to know that dictators were 'saints'. I guess if you ignore the fact that they're STILL recovering Military era loot and that they all killed each for power...
In Today's Issue
Update on deputy Commissioner of Police’s fraud habit
Effect of CBN’s BDC policy on currency
How much do ex-governors earn?
Puma is suing Nigeria
Doctors on strike amid COVID
Nigeria gets more vaccines
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Abba Kyari's fraud habit
Last week, we reported that The Nigerian Police Force set up a committee to investigate Deputy Commissioner of Police, Abba Kyari and his affiliation with convicted fraudster, Hushpuppi.
So far, the police have suspend Kyari while they investigate the case.
A United States District Court of California, has requested a pre-trial arrest and detention of suspended Nigeria Deputy Commissioner of Police, Abba Kyari, for 10 days.
The Attorney General of the Federation, Abubakar Malami, says he can't say Kyari will be extradited, but Nigeria does have a standing agreement with the US
“We have bilateral agreement on extraditing anyone who commits any offence in any of the countries [...] but there are guidelines [...] when the country writes a letter to the foreign affairs ministry, the foreign affairs will send to the minister of justice…so the court will give permission for extradition".
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What money is saying
Don’t ask Naira how it’s doing
Last week, after stopping sale of ForEX to the blackmarket and reallocating to traditional banks, CBN instructed banks to create a kiosk for customers buying forex, and sell at an official rate of N412/$1.
The Nigerian Guardian reports that banks are complying, but with quantity restrictions: People buying for personal expenses are allowed $4,000 per quarter while people travelling/buying for business purposes get $5,000 per quarter.
If you were to use your card to buy from Amazon, though, you'll most likely be buying at somewhere between N505 and N510 per dollar (Source).
As of the 28th of June, the official market rate was N525/$1, so 505 is a slow but significant upward trajectory for the Naira (Source).
But banks still require heavy documentation to access foreign currency. If this carries on, it will drive people back to BDCs, regardless of the cost, which will disrupt the CBN’s market regulation plans.
CBN is NOT with bank scams
Last week, CBN instructed banks to repay a total of N82.2 billion worth of failed transactions.
According to CBN Governor, Godwin Emefiele, the repayment is based on verified complaints made between January and June this year (basically, people had to report banks to CBN to get their money back).
According to the CBN's records, over 23,536 people have reported transfers missing in transit from their bank.
Pro tip: If you're missing money and your bank isn't responsive, report to CBN. Send an email to your bank with CBN’s official email address in copy, reminding them of how long it has taken to solve your issue and how much is missing.
CBN ready to launch eNaira
The Central Bank of Nigeria announced that it will launch the pilot scheme of its digital currency (eNaira) by October (The Cable).
The Central Bank Digital Currency (CBDC) is a digital form of a country's currency. It belongs to the country and is distributed by recognised banks and financial institutions.
CBDCs create a more cost-effective way for countries to provide their currency— instead of distributing coins, banks and financial institutions give digital coins
CBN (and other central banks) say CBDCs are not expected to replace cash, they will be used simultaneously
So far 5 countries have fully launched their own digital currencies and another 76 others are considering it
Read more about CBDCs here.
Lagos shrinks governors allowance
The Lagos State House of Assembly has reduced the pension of former governors of the state (est. N7.7m per annum) by 50%. They'll also stop paying for housing in Abuja and Lagos for ex-governors.
Currently, a Nigerian ex-governor's annual "pension" (paid from the end of their term) is the same as a sitting governor's annual salary.
In Lagos, former governors are also entitled to 6 new cars every 3 years and a house in Lagos and another in Abuja.
In other states like Kwara, they get 3 cars replaceable every 3 years.
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Puma is suing Nigeria (AFN vs FMYSD)
German sportswear manufacturer Puma is suing Nigeria's Federal Ministry of Youth and Sports Development (FMYSD) and Athletics Federation (AFN) of Nigeria for the breach of a contract valued at $2.7 million.
AFN, under the leadership of former President of the board of directors Ibrahim Gusau, entered a 4-year contract with Puma. The deal was signed in 2019 and stated that until 2022, Puma will supply Nigerian athletes outfitting at no cost to Nigeria.
It also stated that medalists wearing Puma would give monetary rewards to medalists.
Punch reports that after the deal was signed in 2019, The Minister of Youth and Sports Development, Sunday Dare accused Gusau of sidelining them and vowed not to let athletes wear the brand's kits.
According to the Punch article, last year, the Ministry attempted to get legal backing to annul the Puma deal, but courts ruled in favour of AFN.
Gusau says several efforts were made to send the Puma kits, including attempting to send them through unofficial channels, but the Ministry of Youth wouldn't allow it.
In a stressful twist, the current AFN board insist they're unaware of the contact. In a statement signed by its Secretary General, AFN board members have not seen any contracts, that even board members who were present when Gusau was president don't recall having a discussion about it.
All in all sha. Puma is suing and Nigeria is in for it.
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Vax and the inefficient government
Nigeria’s federal government announced officially the resurgence of the third wave of the COVID-19 infection in the country.
Lagos State Governor, Mr. Babajide Sanwo-Olu, corroborated the FG's announcement on Monday, when he warned about a surge in the cases in Lagos - he reported 4,300 confirmed new cases of the virus, with 30 fatalities in July alone.
The National Centre for Disease Control (NCDC) warned that with the current rate of infections, the deadly Delta variant might spread to more states if conscious efforts were not made to control it.
Despite repeated denials by officials of the National Youth Service Corps (NYSC), Corpers are testing positive in Ogun state, Niger and other NYSC camps across the country.
According to the Ogun state commissioner for health, 7 people who attended the mandatory NYSC camp that was still open despite the pandemic have died.
Combine the nationwide doctors strike protesting irregularities in salary payment to house doctors, and you have a recipe for disaster that only Nigeria can create.
1 positive:
Nigeria received 4 million doses of the US-produced Moderna vaccines donated by the US.
The chief executive officer of Nigeria’s National Primary Health Care Development Agency (NPHCDA), Faisal Shuaib said Moderna will be given to people who have not been vaccinated.
As it is ill-advised by WHO, Nigeria will not administer Moderna as a second shot for people who got one Astrazeneca shot.
He however reassured that Nigeria is expecting 700,000 doses in the coming week and another 3.9 million doses by mid August.
NAFDAC has also approved Moderna (as well as AstraZeneca, Johnson & Johnson, Pfizer).
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What else happened last week?
Twitter ban still on. Enough Is Enough (EIE) Nigeria filed a class-action suit against Telecommunications companies MTN, Airtel, Globacom and 9mobile for violating fundamental human right by adhering to the FG's ban tantrum (Guardian NG).
What you need to know about CBN's new Payment Holding Company and Mobile Money regulatory rules (Nairametrics).
Telcos experiencing major losses due to the FG's SIM card restrictions (Arise).
The Federal executive council (FEC) approves $1.48bn for rehabilitation of Kaduna, Warri refineries (The Cable).
The Federal executive council (FEC) has approved the sum of $11.17 billion for the Lagos-Calabar coastal rail project to link all coastal cities in the country by rail in 6 years (The Cable).
Interpol declares Gloria Osei and husband wanted for investment fraud (People's Gazette).
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Recommended reads
In the US, Masks are reappearing and return-to-office plans have been postponed. Yes, the Pandemic Is Bad Again
How Much Longer Can the Olympics Survive? The international spectacle has become increasingly synonymous with overspending, corruption, and autocratic regimes. (The Atlantic)
When the Dream of Growing Old With Your Friends Comes True. “We all dreamt, We’ll grow old together. We’ll be old ladies together. And we did.” (The Atlantic)