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NIRSAL Debunks Corruption Allegation Over Handling Of ABP, Threatens Litigation

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The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending has debunked reports that the Central Bank of Nigeria has suspended further disbursements to the agency over allegations of corruption in its handling of the Federal Government’s Anchor Borrower’s Programme.
An online newspaper, The Gazette, had claimed that the agency’s “flagship Anchor Borrowers’ Programme” and its Chief Executive, Aliyu Abdulhameed, had been enmeshed in endemic graft, which has all but run down the commercial agriculture scheme.
The publication had cited a March 10, 2021 memo from the CBN, which referred to a February 24 meeting in which the decision was taken to suspend further loans for the scheme.
But NIRSAL says not only are the claims erroneous, the publication also betrayed the writer’s lack of understanding of the relationship between the agency and the CBN, and operations of the Anchor Borrower’s Scheme.
It said: “In their desperation to throw mud, a routine communication between CBN and NIRSAL Plc to activate a workable loan repayment/recovery agreement with Anchor Borrowers’ Programme (ABP) farmers was transformed into a ‘corruption scandal’ allegedly perpetrated by NIRSAL Plc’s leadership.
“The report is not only lacking in credibility but is also totally ridiculous when clear facts and contexts are considered.”
NIRSAL Plc, it says, is a wholly-owned investee company of the CBN, incorporated with the main mandate to de-risk agriculture and facilitate agribusiness.
Being the sole owner of NIRSAL, the CBN has the right to assign to it other tasks that are related to its core mandates such as issuance of credit risk guarantees to banks and investors for agriculture and agribusiness projects, technical assistance to project owners and financiers, rating and incentivising actors in the agricultural value chain and agricultural finance market place, among others.
Apart from its core mandate of credit risk guarantee operations, it can also serve as a Participating Financial Institution in the CBN’s Anchor Borrowers’ Programme through which the CBN provides loans to farmers on very concessional terms.
It debunked as fallacy the assumption that NIRSAL is synonymous with the Anchor Borrower’s Programme, as it is just one of the many Participating Financial Institutions involved in the programme.
It explained: “Contrary to the impression given in these false reports, NIRSAL Plc is one of several Participating Financial Institutions (PFIs), not the only one involved in the ABP. In fact, the scheme was launched in 2015 (two years before NIRSAL Plc’s involvement) by President Muhammadu Buhari to create a linkage between anchor companies involved in the processing of agricultural produce and smallholder farmers of the said produce. The idea that ABP is solely operated by NIRSAL Plc is completely ludicrous and incompatible with the facts.”
“The roles of NIRSAL as an agricultural organization is to organize farmers, register them and present them to the CBN for consideration as borrowers for its agricultural loans after due diligence and credit checks to ensure their creditworthiness. The CBN creates these loans directly in the names of the farmers and the farmers’ bank accounts are credited with the loans accordingly.
“All funds disbursed by the CBN under the ABP are accountable down to the level of the farmer and his farm, including the farmer’s biometrics, home address, telephone number, bank account number, BVN, photograph, farm location, current loan status, and so on.
“NIRSAL Plc, together with field officers (DFOs) of the Development Finance Department (DFD) of the CBN, monitor these farmers to ensure proper loan utilization throughout their growing cycle.
“At harvest, farmers are expected to pay back their loans in cash or kind or both.
“Where farmers cannot pay back over the tenor of their loan facility, the CBN in most cases provides these farmers additional time to enable them to pay back.
“Where farmers refuse to pay back, the CBN rightly suspends further loan disbursements to these farmers, gives them forbearance to pay back in return for re-consideration to re-join the programme through the PFI that organized them in the first place.
“It is this ordinary, internal, day-to-day programme management and administrative communication between two related institutions that these unscrupulous online media platforms have illegally acquired and made an issue of ‘corruption scandal against NIRSAL Plc and its Management’.”
It insisted that in line with global standards in credit management and for the proper management of schemes like the Anchor Borrower’s Programme, the CBN can suspend disbursement of its loans to those farmers, under any PFI window, where they (farmers) prove recalcitrant in repaying their loan obligations.
It said: “The CBN does this via the PFI window that presented these farmers for enrollment into the programme in the first place. This is the right step to protect the scheme and ensure that progress towards the attainment of its objectives is not compromised.
“Therefore, when accumulated loans are not paid, indebted farmers can be suspended from further accessing the facility until they repay their outstanding commitment.”
It said that contrary to the false stories bandied about by “some integrity-challenged journalists and their sponsors,” NIRSAL Plc could not have taken liberties with ABP funds because no such funds are under its absolute control, and NIRSAL itself is owned by the CBN, so its entire corporate accounts are operated in and within sight of the CBN as its own banker.
“Against this backdrop, the notion that a typical CBN internal administrative communication, to its own company, was tantamount to a sanction against NIRSAL PLC for ‘corruption’ is a deliberately misplaced, outright falsehood that is totally lacking in basic credibility,” said the Management.
The agency said it has a positive track record as a Participating Financial Institution in the CBN Anchor Borrowers’ Programme, which is characterised by quality performance and significant milestones, adding: “It is also an unimpeachable fact that our performance in loan management and loan repayment/recovery from farmers under the ABP, a process which is still ongoing as more farmers are harvesting and selling their produce, is a solid one that compares favourably with peers in the scheme.”
It also defended its Chief Executive: “Under the oversight and inspiration of Mr. Godwin Emefiele, the CBN Governor and board chairman of NIRSAL Plc, Mr. Abdulhameed, working with a competent and highly motivated team, has built NIRSAL Plc, from the ground up, into an effective high-profile institution that has facilitated over N120 billion of critical funding into key agricultural projects in the five short years of its corporate existence.
“This success seems to have become his albatross, fueling the anger of a cabal that is determined to rubbish the successes of the Buhari administration’s passionate focus on agriculture and agribusiness in their desperation to hound and destroy Mr. Abdulhameed.
“But we are not intimidated. We are confident that, like previous campaigns of falsehood against NIRSAL Plc’s leadership, this will also fail because our performance speaks for us and the truth will ultimately prevail.
“We will not allow falsehood and other invented distractions to stop us from doing justice to the credible work we are doing to boost Nigeria’s agriculture/agribusiness economy and the overall economy.”
NIRSAL demanded that the newspaper retracts its defamatory publication, failing which a legal process will be initiated against it.

BIG STORY

Appeal Court Nullifies Rape Conviction Of Lagos Doctor Femi Olaleye

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The Lagos appeal court has overturned the “rape” conviction of Femi Olaleye, managing director of Optimal Cancer Care Foundation. On Friday, the appellate court ruled that the lower court “erred” in its judgment.

Olaleye was arraigned in November 2022 on a two-count charge of “defilement of a child” and “sexual assault by penetration.”

He was convicted in October 2023 and sentenced to life imprisonment for “rape.”

However, the appeal court held that the lower court relied on “tainted” and “unreliable” evidence.

THE VERDICT

The three-member panel of the appeal court are Jimi Olukayode Bada, Mohammad Sirajo, and Folasade Ojo.

Bada read the lead judgment which was adopted by the two other justices.

The appeal court held that the lower court erred based on the “tainted” and “unreliable” evidence of Oluremi, the defendant’s wife, and the alleged survivor.

The appeal court stated that Oluremi’s conduct showed that she was motivated by greed and the desire to take over the appellant’s assets upon his incarceration.

The appellate court described Olaleye’s wife as a “tainted witness”.

The court also ruled that the lower court relied on the “hearsay evidence” of the other witnesses on the age of the alleged survivor.

The appellate court held that since none of the witnesses witnessed the birth of the alleged survivor, it was wrong for the lower court to rely on their testimonies.

The court ruled that the prosecution’s case that the alleged survivor was a 16-year-old child was bereft of evidence.

The court described the testimonies of the child forensic specialist, that of a medical doctor from the Mirabel Centre, and the investigating officer’s, as “worthless”.

The appellate court said the trial judge “interfered” in the proceedings by bridging the “yawning gaps” in the prosecution’s case.

The court held that the prosecution failed to present material witnesses such as two family members who witnessed Olaleye’s alleged confession.

The court said a trial within trial ought to have been conducted to ascertain the voluntariness of the appellant’s confessional statements while in police custody.

The court of appeal resolved all five issues in favour of the appellant.

The appeal court thereafter discharged and acquitted Olaleye.

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BIG STORY

US-Based Nigerian May Get 20-Year Jail Term Over Money Laundry

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A United States-based Nigerian, Samson Omoniyi, who was arrested alongside eight others for alleged money laundering and fraud, may be sentenced to 20 years in prison if found guilty by US authorities.

This was contained in a press statement signed by the Office of Public Affairs of the US Department of Justice late Wednesday.

The statement noted that Omoniyi, alongside his accomplices, was indicted on Tuesday on allegations of conspiracy to engage in money laundering following their arrest across three jurisdictions in the US.

It further indicated that the defendants, who remain innocent until proven guilty by the court, operated a money laundering organisation to launder proceeds from fraud amounting to millions of US dollars, allegedly obtained from defrauding multiple citizens.

The statement read, “An indictment was unsealed yesterday (Tuesday) in Nashville, Tennessee. It charges nine members of a multi-state money laundering organisation with laundering millions of dollars derived from internet fraud, including business email compromise schemes. The nine defendants were arrested in a coordinated takedown across three jurisdictions.

“According to court documents, Samson A. Omoniyi, 43, of Houston; Misha L. Cooper, 50, of Murfreesboro, Tennessee; Robert A. Cooper, 66, of Murfreesboro; Carlesha L. Perry, 36, of Houston; Whitney D. Bardley, 30, of Florissant, Missouri; Lauren O. Guidry, 32, of Houston; Caira Y. Osby, 44, of Houston; Dazai S. Harris, 34, of Murfreesboro; and Edward D. Peebles, 35, of Murfreesboro, were charged with conspiracy to engage in money laundering.

“As alleged in the indictment, the defendants were members of a long-running money laundering organisation operating since approximately November 2016 in and around Tennessee, Texas, and across the country.”

The statement further stressed that the defendants used the structured organisation as a guise to launder the proceeds of their fraud and to enrich members of the syndicate.

“The conspirators allegedly structured the organisation so that recruiters or ‘herders’ recruited and directed participants or ‘money mules’ to launder money obtained from Internet frauds that targeted businesses and individuals in the United States and abroad.

“The defendants allegedly used sham and front companies to conceal the fraud proceeds and enrich the conspiracy members. The conspiracy allegedly agreed to launder more than $20 million in fraud proceeds,” it stated.

According to the statement, each of the defendants could be sentenced to 20 years in prison under the US Sentencing Guidelines as the maximum penalty for their offence.

“The defendants each face a maximum penalty of 20 years in prison if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law,” the statement concluded.

Earlier reports had it that two Nigerians, Anthony Ibekie and Samuel Aniukwu, were sentenced by a US federal jury to 30 years combined jail time for defrauding some US citizens of $3,500,000.

According to the US Justice Department, the duo had deceived their victims by telling them that they had received substantial inheritances that required some money to claim.

The duo was said to have requested their victims send money with a promise to refund them once the inheritances were claimed.

It was also noted that the duo carried out romance scams by establishing romantic relationships with their victims and demanding that they send money after building trust with them.

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BIG STORY

Australia Bans Social Media Use For Children Under-16

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Australia’s parliament on Thursday passed a world-first law banning social media for children under 16, putting tech companies on notice to tighten security before a cut-off date that’s yet to be set.

The ban came following the passage of a groundbreaking law in parliament.

The new law was drafted in response to what the Labor Prime Minister, Anthony Albanese, described as a “clear, causal link between the rise of social media and the harm [to] the mental health of young Australians.”

“We want our kids to have a childhood and parents to know we have their backs,” Albanese told reporters afterwards.

The new law, passed by the Senate with 34 votes to 19, prohibits platforms like TikTok, Snapchat, Instagram, Facebook, X, and Reddit from allowing users under 16.

Companies found in violation could face fines of up to AU$50 million (US$32 million). YouTube has been excluded from the ban due to its educational content.

While the law has been hailed by some as a bold move to protect children, it has drawn criticism from academics, advocacy groups, and tech experts.

Concerns have been raised that the legislation could drive teenagers to unsafe spaces like the dark web or lead to increased isolation.

Questions about enforcement have also surfaced, with critics warning that rushed implementation could create privacy risks if companies require extensive personal data for age verification.

Amnesty International has recommended that the bill be reconsidered, arguing “ban that isolates young people will not meet the government’s objective of improving young people’s lives.”

The bill received over 15,000 public submissions in a single day, many opposing the measure, after tech billionaire Elon Musk drew attention to the proposal on X.

The law will take effect in 12 months, allowing time for the government to trial age-verification technologies.

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