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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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Former Perm Sec Commissions 4.6km Damare Road, Lauds Fintiri’s Achievements

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A retired federal permanent secretary and elder statesman Alhaji Ahidjo Bamanga has lauded Governor Ahmadu Umaru Fintiri for his outstanding achievements in 3 years which have uplifted the status of the state

He was speaking during the commissioning of 4.6km ATV Damare road in Girei local government area.

Speaking shortly before the commissioning Alhaji Bamanga applauded the Governor for his commitment towards changing the fortunes of the state.

The elder statesman described Governor Fintiri as a committed, result oriented and great achiever who has salvaged the state from the shackles of underdevelopment urging all Adamawa people to support him for continuity.

Earlier Governor Fintiri said the 4.6km road is part of the landmark achievements in the deliveries of the urban renewal campaign of his administration.

The Governor said government has developed a two way approach to infrastructural strides which is urban renewal and rural infrastructure and community development and it will not rest on its oars till it achieves that.

He proudly noted that Adamawa is wearing a beautiful look and has fast become an investment hub for investors.

While pledging to continue to flag off and commission projects till the end of his tenure he reiterated his resolve to ensure that no one is left behind and nothing is left untouched.

Commissioner of works and energy development, Adamu Atiku
said the 4.6km ATV Damare road is strategic and important as it has ameliorated the plight of commuters and opened up the area for development.

There were goodwill messages from the District Head of Girei, Dr Ibrahim Ahmed Mustapha, and chairman Girei Local Government Council Judah Amisa and Baba Salam.

High points of the event was a display of three hearty cheers from corp members who are major beneficiaries of the road which leads to the NYSC orientation camp Damare.

The Governor while inspecting the road had a stopover at the NYSC camp and was cheerfully welcomed by the corp members.

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Accountability: Nat’l Lottery Trust Fund Emerges 2nd Best Compliant Agency In Nigeria

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Dr Bello Maigari, the Executive Secretary , National Lottery Trust Fund, has said that the Agency emerged the second best accountability compliant in Federal Government Agency’s Anti Corruption and Transparency Units ( ACTU) in 2021.

Dr Bello Maigari made the agency’s stand clear in a statement issued on Monday and signed by Muhammad Auwal Adam, Media and Puɓlications unit of the Trust Fund.

Dr. Maigari equally stated that the agency was the fourth best compliant among the government MDA in efficiency and transparency in the workplace.

“In less than Three years of the constitution of the Unit, the agency scored 84.45% to emerge the second best compliant in agency category in Nigeria and the fourth best compliant MDA with systems and processes put in place to promote efficiency and transparency in the workplace”. Maigari said.

According to Dr. Maigari, the success is attributed to the efforts put by the agency’s Anti-Corruption and Transparency Unit (ACTU).

The Executive Secretary stated that the development equally followed the high standards of transparency and accountability collectively exhibited by the management and staff of the agency.

Similarly, Federal Government has lauded the National Lottery Trust Fund for gigantic intervention in National Sports Development and urged other government MDAs to emulate.

According to Dr Bello Maigari, the commendation followed the giant intervention so far made by the agency in promoting nation’s sport.

He said that over N574m worth of sports equipment procured by the National Lottery Trust Fund and distributed to over 2000 selected public primary schools across the country.

He noted that the significance of the intervention would go along way in promoting good causes and sport Development among Nigerian Youths.//

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Ishaka Dedan Reelected As Adamawa NUJ Chair

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The Adamawa state Council of the Nigeria union of Journalists, NUJ Saturday held its election which saw the emergence of Ishaka Donald Dedan as the Chairman for the second term.

This was announced by the Chairman, Electoral Committee of the twenty twenty two election, Comrade Bashir Liman at the N UJ’s Secretariat, Press Centre Yola.

The returned Chairman, Comrade Ishaka Donald Dedan polled one hundred and ten votes to defeat his rival Comrade Kate Aliyuda who polled seventy two votes.

Meanwhile, Comrade Fidelis Jockthan polled one hundred and twenty votes to clinch the position of Secretary defeating his closest rival Jonathan Filibus who polled seventy three votes.

The office of the treasurer was won by Joy Diamond Leka with one hundred and sixteen votes beating her rival Felicia Amos who polled thirty seven.

Other positions of Auditor and Assistant Secretary were unopposed.

The newly elected leaders were administered oath of office by Barrister Sunday Wugira.

In an inaugural speech, the Vice Chairman, Nigeria Union of Journalist, North East zone, Comrade Zare Baba charged the new executive to carry every body along and eschew bigotry and favoritism.

In an acceptance and victory speech, the Chairman, Nigeria Union of Journalists, NUJ, Comrade Ishaka Donald Dedan who thanked God for the victory pledged to play an open door policy.

Comrade Dedan who solicited prayers and support of the members urged them to advise them where necessary.

Speaking, the Permanent Secretary ministry of information, Barrister Isuwa Misali who congratulated the new executives to work together towards forging the union forward.

Other speakers at the event who presented their good will messages include NUT state Chairman, Comrade Rodney Nathan, representative of the Judicial Staff Union of Nigeria, JUSUN Adamawa state Chapter and Radio Television Theatre and Art Workers Union, RATTAWU.

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