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CBN And CRYPTOS: Defending The Financial System And Economy

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The primary functions of central banks are formulating and implementing monetary policy, regulating and supervising the banking and financial system, managing foreign reserve and ensuring financial market stability, determining interest rate and directing money supply to achieve price stability.

The financial system is of prime importance in driving the economy. It is the axle on which the wheel of economy revolves. Financial system stability is linked to monetary policy. A stable financial system engenders macro-economic stability which enables businesses to plan.

Financial system instability is detrimental to the economy. Experts have identified that financial system instability is caused by multiple factors with complex dynamics such as global imbalances, under-regulation/supervision, market liberalisation and insufficient transparency.

Other factors include complex risks, exchange rate risks and contagion, interest rate risks, information asymmetry, poor corporate governance, moral hazards and irrational exuberances.

After the 2008-2009 global financial crisis, central banks became more strategically sensitive and agile about the architecture of their financial systems. They became more alert to recognise changes in the global financial landscape and act more swiftly as appropriate to forestall undesirable consequences.

Central Bank of Nigeria, CBN, places financial system stability on the front burner. The Bank had developed a framework and tools for managing factors that create liquidity shocks with zero tolerance on practices that undermine the health of financial institutions.

Recently CBN prohibited deposit money banks, non-banking institutions and other institutions from facilitating trading and dealings in crypto currencies.

A crypto currency is digital money; a type of currency which uses digital file as money. It has “decentralised control” which implies that it is not controlled by one person or government.

There are more than 6000 different crypto currencies that are traded publicly. Some of the very notable ones include Bitcoin, Ethereum, ETH, Litecoin, TCC, Dash, Ripple and many others. The total value of crypto currencies as at February 2021 reportedly stood at $1.6 trillion. Crypto currencies are said to be in high demand because of ease of use. “All it takes is just to get a smart device, an internet connection and instantly you become your own bank, making payments and money transfers.”

According to a media report, “more cryptocurrency trading goes on in Nigeria than almost anywhere else in the world”, which is said to reflect a loss of faith in more traditional forms of investment. And that 32 per cent of Nigerians use cryptocurrencies, the highest proportion of any country in the world.

CBN Governor, Godwin Emefiele, notes that the prohibition was in the best interest of the financial system and depositors. According to Emefiele: “Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”

He further noted that cryptocurrency operation was opaque, unregulated and dangerous. And that it contravened an existing CBN Act (2007) which made CBN the issuer of legal tender in Nigeria, made it suitable for the perpetuation of illegal activities such as money laundering, terrorism financing, purchase of small arms and light weapons and tax evasion.

CBN is not alone in the prohibition of use of crypto currencies. China also banned the use of crypto currency. Other countries that have followed suit include Morocco and Algeria where a breach attracts heavy fines. Other countries include Bolivia, Ecuador, Nepal, Macedonia and Bangladesh. But USA, Germany, France and Canada. Others include Malta, Holland, Singapore and India which legalised trading in crypto currency.

Aligning with CBN’s policy, some experts have also warned that cryptocurrencies may not be that safe and advised people to steer clear of them. They noted that, unlike the proper currency, cryptocurrencies lack stability, have price volatility, and expose investors to theft.

A notable billionaire investor, Warren Buffet, reportedly called cryptocurrency a “mirage” and noted that “it does not meet the test of a currency”. He added that “it is not a durable means of exchange, it’s not a store of value and I can say almost with certainty that they will come to a bad ending.”

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Politics

Crisis Looms Taraba PDP, AS Court Restrains New Chairman From Assuming Office

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The Federal High Court sitting in Jalingo, Taraba State Capital on Friday gave an order of interim injunction restraining Alhaji Abubakar Bawa from functioning as the state Chairman of the People’s Democratic Party (PDP) in the state.

Justice Bala Usman issued the order in response to the application by the erstwhile acting Chairman of the party Mr. Inuwa Bakari, challenging the recent appointment of Bawa as the state chairman of the party.

A Certified True Copy of the injunction obtained by our Correspondent in Jalingo read in part that “upon this MOTION EX-PARTE dated the 31st day of March 2023 and filed on the same date coming up before this Honourable Court praying for the following reliefs:

“AN ORDER of INTERIM INJUNCTION restraining the 2nd Defendant Abubakar Bawa from acting, carrying out functions, and parading himself as the chairman of the Peoples Democratic Party Taraba State chapter pending the hearing and determination of the Motion on Notice.

“AN ORDER restraining the 1st Defendant from taking any step (s) that may negatively affect the membership right of the Plaintiff as the acting chairman of the 1st Defendant pending the hearing and determination of the Motion on Notice.

“AN ORDER restraining the 1 Defendant by itself or any of its organs at any level from expelling, suspending, reprimanding, censuring, fining, department from any party office and removal of the Plaintiff from office pending the hearing and determination of the Motion on Notice.

“AND for such further or other Order(s) as this Honourable Court may deem fit to make in the circumstances”. 

The Injunction further read that “upon reading the affidavit in support of the Motion paper, sworn to by one Alhaji Bakari Inuwa, Male, Adult, Nigerian Citizen, of Old Pantisawa Road, Nyamusala, Jalingo, Taraba State, filed in the Registry of this Court on the 31st day of March 2023, and after hearing Chief C. C. Damba Mbanaso, Esq. of Counsel for the Plaintiff/Applicant moved in terms of the Motion paper, it is hereby ordered as follows:

“That an order of INTERIM INJUNCTION is hereby granted restraining the 2nd Defendant Abubakar Bawa from acting, carrying out functions, and parading himself as the chairman of the Peoples Democratic Party Taraba State chapter pending the hearing and determination of the Motion on Notice.

“That an Order is made restraining the 1st Defendant from taking any step (s) that may negatively affect the membership right of the Plaintiff as the acting chairman of the 1st Defendant pending the hearing and determination of the Motion on Notice.

“That an Order is made restraining the 1 Defendant by itself or any of its organs at any level from expelling, suspending, reprimanding, censuring, fining, debarment from any party office and removal of the Plaintiff from office pending the hearing and determination of the Motion on Notice”.

Justice Usman, however, announced that the matter is adjourned to the 9th of May, 2023 for a hearing.

Recalled that Governor Darius Ishaku had recently appointed his Senior Special Adviser on Political Affairs, Alhaji Abubakar Bawa as the state Chairman of the party, a move some people described as trying to control the party machinery even after leaving office on May 29th.

When contacted through telephone, the embattled party Chairman, Alhaji Abubakar Bawa confirmed that he was aware of the court case but did not receive any surmon.

“Frankly speaking I don’t know anything but I heard that I was taken to court but nobody bring a surmon to me, nobody call me and I did not go to the court, that is the only thing I know,” Bawa added.

When asked whether he will still go to the office on Monday, Abubakar Bawa said “I am a law-abiding citizen, so, since the court has given an order I will comply.”

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Za Kuga Chanji Cikin Kwanaki Dari Na Farko A Ofis- Zababben Gwamnan Taraba, Agbu

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Zababben Gwamnan Jihar Taraba, Kanal Kefas Agbu (mai ritaya) yace da yardan Allah zasu kawo chanji na zahiri cikin kwanaki dari na farko da za suyi a ofis.

Agbu ya sanar da hakan ne a lokacin da yake yiwa dunbin magoya bayan Jam’iyyar su ta PDP yawabin godiya jim kadan bayan ya karfi takardan shedan zaben sa daga ofishin hukumar zabe mai zaman kanta ta INEC dake Jalingo.

Kwamishinan zabe na hukumar zaben mai zaman kanta ta INEC dake Jihar Taraba, Umar Muktar Gajiram shine ya mikawa zababben Gwamnan Jihar, Kanal Kefas Agbu (mai ritaya) takardan shedan zaben sa a ranar laraba 29 ga watan maris na 2023 da muke ciki.

Hakanan kuma, Umar Muktar Gajiram ya mikawa suma zababbun ‘Yan Majalisan dokokin jihar ta Taraba guda 24 takardan shedan zaben su a dakin da aka gudanar da tattara sakamakon zaben Gwamnan Jihar wanda ya gudana a ranar 18 ga watan maris din dake cikin haraban hukumar zaben a garin Jalingo.

Da yake yiwa dunbin magoya bayan sa da Jam’iyyar su ta PDP yawabin godiya, zababben Gwamnan Jihar, Kanal Kefas Agbu (mai ritaya) yace da yardan Allah zasu tafiyar da gwamnati ne na kowa da kowa domin hada kan al’umma, samar da zaman lafiya da ayyukan cigaba.

Batun addini, na sahun gaba wajen farraka al’umman jihar ta Taraba, toh saide kuma ga sakon da Kanal Kefas Agbu (mai ritaya) ya baiwa Al’umman jihar.

“Batun addini wannan tsakanin Mutum ne da Allah, saboda haka Ina rokon ku ku taya mu da addu’a, dawan sukayi da wanda ma ba suyi ba dukkan mu daya ne, zamu sami zaman lafiya a Taraba, zamu hada kai, duk abinda gwamnati ya kamata tayi za muyi shi da yardan Allah,” inji Kanal Agbu.

Wasu daga cikin jama’an da suka dalarci taron sunyi fatan alheri da rokon iri daga sabuwar Gwamnatin mai zuwa.

Sun roki Kanal Kefas Agbu (mai ritaya) daya duba wadan da suka yi ritaya daga aikin gwamnatin jihar kuma ba’a biyasu hakkin su ba na tsawon shekaru.

Mr. Nelson Len, Uwargida Veronica Alhassan, Gimbiya Batulu Muhammed, Mr. Gideon Katabs, Alh. Musa Abdullahi Chul, da Tsohon Kakakin Majalisar dokokin jihar Taraban, Peter Abel Diah na daga cikin zababbun ‘Yan Majalisan dokokin jihar guda ashirin da hudu.

Gimbiya Batulu Muhammed daga Gashaka, da Veronica Alhassan daga Bali ta daya zasu kasance mata guda biyu cikin ‘yan Majalisar dokokin jihar kashi na goma.

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God’s willing you will see changes within our 100 days in office – Taraba Governor-elect, Agbu

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Taraba State Governor-elect, Col. Kefas Agbu (Rtd) has pledged to transform the state within his hundred days in office.

Agbu made the promise on Wednesday while addressing a large gathering at his house shortly after he received the certificate of return from the resident Commissioner of the Independent National Electoral Commission, Umar Muktar Gajiram in Jalingo.

The Governor-elect, Col. Kefas Agbu (Rtd) alongside his Deputy, Alhaji Aminu Alkali while thanking the people of Taraba State for believing in them and giving them the mandate also promised to run an all-inclusive government.

“I promise you that by the grace of God, we will have unity, peace, and development. 

“We will create job opportunities for the teaming unemployed youth, and by his grace, we will do everything that a government supposes to do for its citizens to make Taraba great,” Agbu assured.

According to the Governor-elect, (rtd) Col. Kefas Agbu, the issue of religion is between man and God, therefore, he urged the people of the state to embrace one another and pray for the incoming administration.

“I am also urging you whenever you see us doing something that you feel is wrong, you should please call our attention in decent manners but not with insults, and I promise you we are going to carry everyone along,” he emphasized.

Some supporters and well-wishers who spoke to SAHEL REPORTERS Comrade Mannsir Audu from Gashaka, the former PDP state Women leader, Hon. Felicia Kaletus and the Taraba State Chairman of Rescue Teachers, Comrade Sylvanus Acha prayed for the new administration of (rtd) Col. Kefas Agbu for God’s guidance, and expressed optimism that the new government will change the narrative of the state in terms of development.

“Our expectations from his administration are very high from this new administration but we are very optimistic that he will do much better,”.

However, some elected new members into the Taraba State House of Assembly Mr. Nelson Len from the Nguroje constituency, and Mrs. Veronica Alhassan from the Bali I constituency all under the platform of the people’s Democratic Party PDP, appreciated their constituents and promised them good representation.

Meanwhile, Mrs. Veronica Alhassan and Hajiya Batulu Muhammed who also won the state house of assembly seat under the platform of the All Progressives Congress APC from Gashaka will be the two female legislators among the twenty-four house of assembly members in the state.

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