Nigeria’s central bank plans to charge 12 banks a total of more than 400 billion naira ($1.3 billion) for failing to meet its minimum loan-to-deposit ratio requirement by a September deadline, three banking sources told Reuters on Thursday.
The central bank has been seeking to boost credit to businesses and consumers after a recent recession in Africa’s biggest economy, but lending has yet to pick up. With growth slow, banks prefer to park cash in risk-free government securities rather than lend to companies and consumers.
Nigeria’s economy is expected to pick up in 2019 with gross domestic product expanding close to 3%, up from 1.9% last year, according to the central bank.
In July, the central bank asked lenders to maintain a ratio of lending out at least 60% of deposits by September as part of measures aimed at getting credit flowing.
Bank chief executives plan to meet with the banking regulator in Abuja on Thursday to discuss the charges, the sources said.
The local units of Citibank and Standard Chartered Bank are among those affected, the sources said.
Other include top tier Nigerian lenders Zenith Bank, Guaranty Trust Bank, First Bank and United Bank for Africa.
The central bank did not respond to a request for immediate comment. The banks declined to comment.
Lenders have done little to expand borrowing in Nigeria, blaming a weak economy after a 2014 oil price crash and a currency crisis that made loans go sour. Analysts fear growing credit quickly could weaken asset quality and capital buffers.
The central bank has said loans rose 5.3% in the three months to the end of September to 16.40 trillion naira, due the new minimum requirement and increased the lending ratio target in what it said was a move to sustain the momentum.
In the last few months, the regulator has also capped interest-bearing deposits at the central bank and barred banks from buying treasury bills for their own accounts at an open market auction, to boost lending.
Reuters
Thursday, October 3, 2019
Nigeria and South Africa to set-up warning system on xenophobic attacks
Nigerian President Muhammadu Buhari has met his South African counterpart Cyril Ramaphosa, weeks after xenophobic attacks in Johannesburg triggered tensions between Africa's leading economies.
Nigerians were among those targeted during the wave of violence which resulted in the death of 12 people and led to an extraordinary airlift of hundreds of people last month.
On Thursday, amid warm smiles and a joint commitment to strengthen bilateral relations, Buhari said the attacks were "unacceptable" and called for preventive measures.
"We call for the strengthening and implementation of all the necessary measures to prevent the reoccurrence of such actions," he said.
Ramaphosa condemned the violence, saying: "Early warning mechanisms will be set up so that when we see there is restiveness in both of our people ... we will be able to inform one another."
He added: "We are equally committed to upholding the rule of law and ensuring that all those involved in criminal activities, regardless of their nationality, are prosecuted."
It is Buhari's first visit to South Africa since Ramaphosa's new administration was established earlier this year. The three-day visit is also the first to the country by a Nigerian leader since 2013.
Buhari and his ministers were welcomed with cannon shots and a guard of honour under a bright spring sun. At the welcome ceremony in Pretoria's Union Buildings, Ramaphosa and Buhari referred to each other as "brothers".
Economic ties
Buhari and Ramaphosa, accompanied by key ministers, discussed various issues, including strengthening economic relations.
The Nigerian leader's visit marks the 20th anniversary of a Bi-National Commission (BNC) established between the two countries in 1999. Since then, dozens of trade agreements have been signed between them.
In 2018, the total value of trade between them amounted to $3.35bn, making Nigeria South Africa's largest trade partner in West Africa.
A joint business forum between South Africa and Nigeria was held on Thursday afternoon.
"We want to create an enabling environment for doing business in our respective countries," said Ramaphosa, pointing out road, mining and infrastructure as key areas.
The South African leader also acknowledged Nigeria's support in the struggle against apartheid.
Buhari said his government is committed to fighting unemployment and poverty in his country. He also promised more opportunities for investors in Nigeria.
Formal relations between the two countries were established after the first democratic elections in South Africa in 1994.
Al Jazeera
Related stories: South Africa President to host Nigeria President after xenophobic violence
Video - Nigerians repatriated from South Africa after attacks
Nigerians were among those targeted during the wave of violence which resulted in the death of 12 people and led to an extraordinary airlift of hundreds of people last month.
On Thursday, amid warm smiles and a joint commitment to strengthen bilateral relations, Buhari said the attacks were "unacceptable" and called for preventive measures.
"We call for the strengthening and implementation of all the necessary measures to prevent the reoccurrence of such actions," he said.
Ramaphosa condemned the violence, saying: "Early warning mechanisms will be set up so that when we see there is restiveness in both of our people ... we will be able to inform one another."
He added: "We are equally committed to upholding the rule of law and ensuring that all those involved in criminal activities, regardless of their nationality, are prosecuted."
It is Buhari's first visit to South Africa since Ramaphosa's new administration was established earlier this year. The three-day visit is also the first to the country by a Nigerian leader since 2013.
Buhari and his ministers were welcomed with cannon shots and a guard of honour under a bright spring sun. At the welcome ceremony in Pretoria's Union Buildings, Ramaphosa and Buhari referred to each other as "brothers".
Economic ties
Buhari and Ramaphosa, accompanied by key ministers, discussed various issues, including strengthening economic relations.
The Nigerian leader's visit marks the 20th anniversary of a Bi-National Commission (BNC) established between the two countries in 1999. Since then, dozens of trade agreements have been signed between them.
In 2018, the total value of trade between them amounted to $3.35bn, making Nigeria South Africa's largest trade partner in West Africa.
A joint business forum between South Africa and Nigeria was held on Thursday afternoon.
"We want to create an enabling environment for doing business in our respective countries," said Ramaphosa, pointing out road, mining and infrastructure as key areas.
The South African leader also acknowledged Nigeria's support in the struggle against apartheid.
Buhari said his government is committed to fighting unemployment and poverty in his country. He also promised more opportunities for investors in Nigeria.
Formal relations between the two countries were established after the first democratic elections in South Africa in 1994.
Al Jazeera
Related stories: South Africa President to host Nigeria President after xenophobic violence
Video - Nigerians repatriated from South Africa after attacks
Unregulated reform schools in Nigeria paint a picture of torture and abuse
Horrific revelations of torture and abuse at a compound billing itself as a Koranic reform school in northern Nigeria have shone a spotlight on Islamic institutes unregulated by the authorities.
Last week police in the city of Kaduna raided a building to find hundreds of men and boys—some reportedly aged as young as 5 — held in atrocious conditions at a facility proprietors described as a religious school and rehabilitation centre.
Inmates were discovered chained to metal railings and with their hands and feet shackled together. Some bore scars from alleged beatings while other recounted being sexually abused.
"If they caught you if you want to run away from this place, they would hang you, they would chain you," one of the victims Abdallah Hamza said.
The shocking revelations made headlines but activists insisted they were symptomatic of abuses that have long-riddled a system beyond official control. Private Islamic schools — known locally as Almajiri schools — are widespread across mainly Muslim northern Nigeria, where poverty levels are high and government services often lacking.
The authorities have estimated that there are more than nine million students enrolled at the institutions.
"The latest example from Kaduna represented the worst of the system and very inhumane conditions," Mohammed Sabo Keana, team lead at the Abuja-based Almajiri Child Rights Initiative NGO, told AFP.
"But they are a clear manifestation of what a lot of children go through —including being made to beg on the streets, subjected to violence, sleeping in the worst conditions imaginable and living with terrible sanitation levels."
"A place of human slavery"
Activists have long pushed the government to reform or end the Almajiri system, arguing that it fails to provide children with the basics of an education. In June Nigeria's presidency said that it wanted ultimately to ban the schools, but insisted it would not be doing so anytime soon for fear of creating "panic or a backlash."
Now calls for change look likely to grow in the wake of the latest scandal. In a statement on the case the office of President Muhammadu Buhari — himself a Muslim from northern Nigeria — denounced the facility "as a house of torture and a place of human slavery."
"We are glad that Muslim authorities have dismissed the notion of the embarrassing and horrifying spectacle as (an) Islamic School," the statement said.
But it steered clear of mentioning any move to prohibit the schools and insisted that enforcing free compulsory education was a "panacea."
"To stop unwanted cultural practices that amount to the abuse of children, our religious and traditional authorities must work with the federal, state and local governments to expose and stop all types of abuse that are widely known but ignored for many years by our communities," it said.
"Stay in line"
Defenders of the Almajiri system argue that it can offer poor families services the Nigerian state woefully fails to provide. Millions of children in the country go without any education despite primary school nominally being free.
Retired civil servant Yusuf Hassan runs the Almajiri Foundation in the northern city of Kano that has looked to improve the system. He insisted that most schools are not like the one uncovered in Kaduna and instead blamed so-called "rehabilitation centers" where families send relatives considered delinquent or drug addicts.
"Some parents who have children that are difficult to manage at home take them to such rehabilitation centers," he said. "Some of the centres end up chaining the kids because they know they will run away."
Hassan blamed a lack of any government medical or psychiatric care to help tackle widespread drug addiction in northern Nigeria and said a first step should be to separate rehab centres from schools.
But even some of those who have lived through the brutal treatment meted out in such institutions have argued they can be a force for good. Mohammed Usman was chained up in one when his family took him there to get over a drug addiction in his twenties.
"Of course students were flogged when they misbehave which made us to mind our manners and stay in line," Usman, now 45 and a high school teacher, told AFP.
He said he was taught about religion, morality and "respect" and eventually managed to get clean.
"I was there for nine months and when the teachers were satisfied with my rehabilitation I was released and returned home. Ever since, I have never used drugs."
CBS
Last week police in the city of Kaduna raided a building to find hundreds of men and boys—some reportedly aged as young as 5 — held in atrocious conditions at a facility proprietors described as a religious school and rehabilitation centre.
Inmates were discovered chained to metal railings and with their hands and feet shackled together. Some bore scars from alleged beatings while other recounted being sexually abused.
"If they caught you if you want to run away from this place, they would hang you, they would chain you," one of the victims Abdallah Hamza said.
The shocking revelations made headlines but activists insisted they were symptomatic of abuses that have long-riddled a system beyond official control. Private Islamic schools — known locally as Almajiri schools — are widespread across mainly Muslim northern Nigeria, where poverty levels are high and government services often lacking.
The authorities have estimated that there are more than nine million students enrolled at the institutions.
"The latest example from Kaduna represented the worst of the system and very inhumane conditions," Mohammed Sabo Keana, team lead at the Abuja-based Almajiri Child Rights Initiative NGO, told AFP.
"But they are a clear manifestation of what a lot of children go through —including being made to beg on the streets, subjected to violence, sleeping in the worst conditions imaginable and living with terrible sanitation levels."
"A place of human slavery"
Activists have long pushed the government to reform or end the Almajiri system, arguing that it fails to provide children with the basics of an education. In June Nigeria's presidency said that it wanted ultimately to ban the schools, but insisted it would not be doing so anytime soon for fear of creating "panic or a backlash."
Now calls for change look likely to grow in the wake of the latest scandal. In a statement on the case the office of President Muhammadu Buhari — himself a Muslim from northern Nigeria — denounced the facility "as a house of torture and a place of human slavery."
"We are glad that Muslim authorities have dismissed the notion of the embarrassing and horrifying spectacle as (an) Islamic School," the statement said.
But it steered clear of mentioning any move to prohibit the schools and insisted that enforcing free compulsory education was a "panacea."
"To stop unwanted cultural practices that amount to the abuse of children, our religious and traditional authorities must work with the federal, state and local governments to expose and stop all types of abuse that are widely known but ignored for many years by our communities," it said.
"Stay in line"
Defenders of the Almajiri system argue that it can offer poor families services the Nigerian state woefully fails to provide. Millions of children in the country go without any education despite primary school nominally being free.
Retired civil servant Yusuf Hassan runs the Almajiri Foundation in the northern city of Kano that has looked to improve the system. He insisted that most schools are not like the one uncovered in Kaduna and instead blamed so-called "rehabilitation centers" where families send relatives considered delinquent or drug addicts.
"Some parents who have children that are difficult to manage at home take them to such rehabilitation centers," he said. "Some of the centres end up chaining the kids because they know they will run away."
Hassan blamed a lack of any government medical or psychiatric care to help tackle widespread drug addiction in northern Nigeria and said a first step should be to separate rehab centres from schools.
But even some of those who have lived through the brutal treatment meted out in such institutions have argued they can be a force for good. Mohammed Usman was chained up in one when his family took him there to get over a drug addiction in his twenties.
"Of course students were flogged when they misbehave which made us to mind our manners and stay in line," Usman, now 45 and a high school teacher, told AFP.
He said he was taught about religion, morality and "respect" and eventually managed to get clean.
"I was there for nine months and when the teachers were satisfied with my rehabilitation I was released and returned home. Ever since, I have never used drugs."
CBS
Tuesday, October 1, 2019
Activist Sowore pleads not guilty to treason charges in Nigeria
Nigerian activist and former presidential candidate Omoyele Sowore pleaded not guilty at a court in Abuja on Monday to charges of treason, money laundering and harassing the president.
State Security Service agents arrested Sowore in early August after he called for a revolution after a February election which he said was not credible. He ran for president in that election, in which former military ruler President Muhammadu Buhari secured a second term in office.
Buhari has faced criticism for his administration’s human rights record, particularly a deadly crackdown on members of a now-banned Shi’ite group that a United Nations special rapporteur said involved the excessive use of lethal force. The government has rejected criticisms of its human rights record.
Sowore, who also founded Nigerian online news organization Sahara Reporters, faces seven charges including treason, money laundering and “cyberstalking” for allegedly sharing false information about Buhari that insulted him and incited hated against him.
A court last week denied a request by state security to keep Sowore in detention pending the charges, but did not release him as ordered.
Last week, another federal court in Abuja threatened the head of the State Security Service with prison for contempt of court for the failure to release him. Sowore remained in detention despite the threat.
The judge, Justice Ijeoma Ojukwu, adjourned the case until Oct. 4.
Reuters
State Security Service agents arrested Sowore in early August after he called for a revolution after a February election which he said was not credible. He ran for president in that election, in which former military ruler President Muhammadu Buhari secured a second term in office.
Buhari has faced criticism for his administration’s human rights record, particularly a deadly crackdown on members of a now-banned Shi’ite group that a United Nations special rapporteur said involved the excessive use of lethal force. The government has rejected criticisms of its human rights record.
Sowore, who also founded Nigerian online news organization Sahara Reporters, faces seven charges including treason, money laundering and “cyberstalking” for allegedly sharing false information about Buhari that insulted him and incited hated against him.
A court last week denied a request by state security to keep Sowore in detention pending the charges, but did not release him as ordered.
Last week, another federal court in Abuja threatened the head of the State Security Service with prison for contempt of court for the failure to release him. Sowore remained in detention despite the threat.
The judge, Justice Ijeoma Ojukwu, adjourned the case until Oct. 4.
Reuters
South Africa President to host Nigeria President after xenophobic violence
South African President Cyril Ramaphosa will host Nigerian President Muhammadu Buhari for talks, weeks after xenophobic violence strained economic ties between the two nations.
Nigeria recalled its high commissioner and evacuated some of its citizens last month after a spate of attacks in South Africa left at least 12 people dead, two of them foreigners. Protests in Nigeria over the violence targeted South African companies including mobile-phone giant MTN Group Ltd. and grocer Shoprite Holdings.
Ramaphosa and Buhari will meet Oct. 3 in Pretoria, the capital, the presidency said in a statement Tuesday. They’ll discuss ways “to strengthen political, economic, social and cultural relations,” it said.
Nigeria is South Africa’s biggest trade partner in Africa, with flows estimated at $4.5 billion last year compared with $2.9 billion a decade ago, according to data compiled by Bloomberg.South Africa has seen sporadic attacks on migrants, including Nigerians and Sudanese, the worst of which occurred in 2008 when about 60 people were killed and more than 50,000 forced from their homes. Another seven people died in similar attacks in 2015.
Bloomberg
Related story: Video - Nigerians repatriated from South Africa after attacks
Nigeria recalled its high commissioner and evacuated some of its citizens last month after a spate of attacks in South Africa left at least 12 people dead, two of them foreigners. Protests in Nigeria over the violence targeted South African companies including mobile-phone giant MTN Group Ltd. and grocer Shoprite Holdings.
Ramaphosa and Buhari will meet Oct. 3 in Pretoria, the capital, the presidency said in a statement Tuesday. They’ll discuss ways “to strengthen political, economic, social and cultural relations,” it said.
Nigeria is South Africa’s biggest trade partner in Africa, with flows estimated at $4.5 billion last year compared with $2.9 billion a decade ago, according to data compiled by Bloomberg.South Africa has seen sporadic attacks on migrants, including Nigerians and Sudanese, the worst of which occurred in 2008 when about 60 people were killed and more than 50,000 forced from their homes. Another seven people died in similar attacks in 2015.
Bloomberg
Related story: Video - Nigerians repatriated from South Africa after attacks
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