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REPORT: How FBI Warned FG, CBN On Scammers Using Cryptocurrencies To Defraud Western Countries

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More facts have emerged on why the Central Bank of Nigeria (CBN) decided to ban cryptocurrency trading in the country.

The apex bank prohibited dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges last week Friday.

Investigations by THISDAY have revealed that the federal government and the CBN were warned by the United States’ Federal Bureau of Investigation, (FBI), on the activities of fraudsters using cryptocurrencies to bringing into the country hundreds of millions of US Dollars illegally obtained from the USA and other Western economies.

This was said to have particularly targeted COVID-19 stimulus packages designed to cushion the impact of lockdown measures on businesses and working families in these countries.

In an interview at a Reuters online event last week Wednesday, President of the European Central Bank, Christine Lagarde said of bitcoin: “It’s a highly speculative asset that has led to some reprehensible activity, including money laundering, and any loopholes need to be closed.

“There has to be regulation. This has to be applied and agreed upon at a global level because if there is an escape that escapes will be used; she said.
According to THISDAY investigation, “FBI had discovered that fraudulent Nigerians, popularly known as yahoo boys, took control of large chunks of money released as a stimulus in the wake of the devastating effects of the COVID-19, which has put many Americans out of jobs.”

In order to avoid detection, these fraudsters had been sending millions of dollars to Nigeria through cryptocurrencies. This made it difficult for the authorities in both Nigeria and the US to trace the illicit monies.

However, before these funds were used to destabilize the Nigerian economy, the CBN had to wield the big stick.
In the last six months, Nigeria is said to have become the second country in the world with the biggest cryptocurrency transactions.
According to highly placed sources within the presidency, “These fraudsters remitted between $200 and $300 million to Nigeria every week, using cryptocurrencies.

“The Central Bank and the federal government were clearly alarmed by this development and had to act fast before irreparable damage is done to the economy.” Even more disturbing was that intelligence reports indicated that kidnappers had switched to bitcoin for ransom payments, making it increasingly difficult to trace.

To make matters worse, investigations by FBI showed Nigeria did not have the underlining economic base to justify the massive flow of funds on a weekly basis. To compound the issue, was how the inflows were being routed leaving investigators puzzled and perplexed by the elaborated complicated channels in the digital money world of anonymity.

After the FBI tip-off that these funds being pumped into cryptocurrencies were products of fraud, the federal government, acting through the CBN, had to ban cryptocurrencies in Nigeria.
A cryptocurrency (or crypto) is a digital unregulated currency that could be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions.

Much of the interest in the currency, not backed by any government, is to trade for profit, with speculators at times driving prices skyward.
But the CBN had, at the weekend, directed banks and other financial institutions to immediately close any accounts dealing in cryptocurrency or facilitating payment for cryptocurrency exchange, with immediate effect.

The banking regulatory authorities directed banks to expose any individual and entity running such accounts, warning that failure to adhere to the directives would attract strict sanctions.

The apex bank, in its circular on the issue, cautioned deposit money banks, (DMBs) non-bank financial institutions (NBFIs), and other financial institutions (OFIs) as well as members of the public on the risk associated with transactions in cryptocurrency.

The Director of Banking Supervision, Bello Hassan, and the Director of Payments System Management Department, Musa Jimoh, signed the circular.
“Further to earlier regulatory directives on the subject, the Bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.

“Accordingly, all DMBs, NBFIs, and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.

“Please note that breaches of this directive will attract severe regulatory sanctions. This letter is with immediate effect,” it stated.
However, the CBN directive had immediately drawn heavy criticisms from the Nigerian public, with a former Vice President, Alhaji Atiku Abubakar, advising the apex bank to reverse the decision, arguing that the country couldn’t close her economy at this time

In a statement personally signed, Atiku said the number one challenge facing Nigeria was youth unemployment, explaining that it was not just a challenge, but also an emergency, because it affected the economy, and exacerbating insecurity in the nation.

Speaking against the backdrop of the decision of the CBN to ban and restrict banks transactions in the cryptocurrencies, Atiku said, “What Nigeria needs now, perhaps more than ever, are jobs and an opening up of our economy especially, after today’s report by the National Bureau of Statistics indicated that foreign capital inflow into Nigeria is at a four year low, having plummeted from $23.9 billion in 2019 to just $9.68 billion in 2020.”

He said already, the nation had suffered severe economic losses from the border closure, and the effects of the #COVID19 pandemic.
Accordingly, he explained, “This is definitely the wrong time to introduce policies that will restrict the inflow of capital into Nigeria, and I urge that the policy to prohibit the dealing and transaction of cryptocurrencies be revisited.

“It is possible to regulate the sub-sector and prevent any abuse that may be inimical to national security. That may be a better option, than an outright shutdown.

“There is already immense economic pressure on our youths. It must be the job of the government, therefore, to reduce that pressure, rather than adding to it.

“We must create jobs in Nigeria. We must expand the economy. We must remove every impediment towards investments. We owe the Nigerian people that much,” Atiku stated.

 

Credit: ThisDay Newspaper

BIG STORY

Naija Times Publisher, Braimah, Honoured With University Of Roehampton Alumni Award [PHOTOS]

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Ehi Braimah, a distinguished media practitioner, PR expert and publisher/editor-in-chief of Naija Times, an independent and online newspaper, was honoured in London with the prestigious Chancellor’s Alumni Award of the University of Roehampton which has 90,000 global alumni.

Braimah, one of three Nigerians among the 20 recipients, was recognised for his outstanding achievements, receiving the Alumni Innovation and Inspiration Award. The award ceremony was held at Lime Tree Suite, Elm Grove, inside the campus of the university on October 22, 2024.

The citation read during the award ceremony praised Braimah for using Naija Times to influence change for an egalitarian society by promoting balanced and evidenced-based reporting, especially during critical events like the 2023 presidential election.

“Braimah is a prominent voice for political and economic reforms, maintaining rigorous standards of journalism and fighting corruption,” the citation explained. The other Nigerians who were also honoured were Humphrey Aghoghovbia Jr. and Marian Adejokun.

Speaking at the ceremony, the deputy vice chancellor, Prof Richard Keogh who stood in for the vice chancellor, Prof Jean-Noel Ezingeard, told the audience that the university is a modern institution with a long, rich and proud history. “As many of you now, our roots stretch back to the 1840s through the early work of our founding colleges,” Keogh said.

“Roehampton is a special place and I am truly delighted to welcome you to the 2024 Chancellor’s Alumni awards. We have a rich and vibrant global alumni network that continues to grow.

“Today’s event is significant as we celebrate the remarkable achievements, impact and contributions of Roehampton alumni. When you graduate, your connection to us does not end. We’re immensely grateful to our donor community of 500 individuals and volunteer community of 400 alumni, who have been mentoring our students. More than 400 students have benefited from the mentoring programme.

“We hold the distinction of being the longest serving provider of higher education for women in the UK, and our commitment to professional education, widening participation and transforming lives is as strong today as it was then.”

In her welcome remarks, Eleanor Merrick, Director of Business Development, Fundraising and Alumni Relations who founded the Roehampton alumni 10 years ago, said it was a good feeling having award recipients from different countries under the same roof to celebrate their remarkable achievements, adding that the reception was an opportunity for the alumni to interact and build formidable and long-lasting relationships.

Braimah used the occasion to present two copies of Naija Times’ book, ‘ For a Better Society’ to Prof Keogh for the university’s library.

The University of Roehampton was given its university title 20 years ago by the Privy Council, but it had existed previously as four colleges since the 18th century. Other members of the university community that attended the ceremony included Prof Sunitha Narendran, associate pro-vice chancellor, internationalisation and global engagement, and Prof Dan Nunan, Dean, Faculty of Business and Law.

Braimah’s family members, friends and associates were present to celebrate with him. Those present were his sister-in-law, Bukola Olakotan; aunt-in-law, Cynthia Ologunde; Sam Omatseye, chairman, the Nation newspaper editorial board, Engr. Clement Ede-Agege; Toni Kan, a PR expert and financial analyst; Dr. Toju Ogbe, a global PR strategist and cross-cultural leadership expert, and Matthew Odu, a chartered accountant.

After completing his MBA at the University of Roehampton in 2016, Braimah has continued to demonstrate remarkable commitment to excellence in his professional career by launching multiple media platforms.

As publisher of Naija Times, Braimah has made significant contributions to Nigerian media, using the platform to drive thought leadership and insightful journalism, especially through his column in the newspaper.

In addition to his role as a media practitioner, Braimah is the Deputy President of the Nigerian-American Chamber of Commerce (NACC), where his influence has been instrumental in fostering stronger business relationships between Nigeria and the United States.

His dedication to both media and international commerce reinforces his versatile leadership across multiple sectors. Braimah’s recognition by the University of Roehampton underscores the global impact of the institution’s alumni.

The Chancellor’s Alumni Award celebrates exceptional achievements and the innovative contributions made by Roehampton graduates around the world.

Aside from his media and business roles, Braimah is an active leader in Rotary. He currently serves as an Assistant Governor and chair of the Public Image Committee of Rotary International District 9112.

Braimah’s commitment to community service and improving Rotary’s public image further demonstrates his passion for making a difference, both locally and internationally.

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Dangote Refinery Begins Direct Petrol Sale To Marketers

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The Dangote Petroleum Refinery has commenced the supply of Premium Motor Spirit, commonly known as petrol, directly to some oil marketers, bypassing the Nigerian National Petroleum Company Limited.

It was reported that while more oil marketers are making efforts to procure the product directly from the refinery, others are importing the commodity, with hundreds of millions of litres of imported PMS expected to arrive at Nigeria’s shores within two weeks.

It was earlier reported that at least four vessels carrying imported PMS arrived at seaports along the nation’s borders between Friday, October 18, and Sunday, October 20.

The report, citing a document from the Nigerian Port Authority, stated that about 123.4 million litres of PMS were berthed at two seaports to enhance the fuel supply nationwide.

This aligned with earlier report that oil dealers were planning to import PMS to supplement the supply from the $20bn Dangote refinery.

Meanwhile, as major oil marketers continue to import the product, some have begun lifting PMS directly from the Lekki-based refinery.

A senior official at the refinery mentioned that marketers can now engage in direct business transactions with the company on a “willing-buyer, willing-seller” basis.

“Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the reliable source, who spoke anonymously due to lack of authorisation to discuss the matter, confirmed.

Although the official did not disclose the price at which the marketers were acquiring the product, he suggested that they would not be purchasing it if the price were not favourable.

“We have reached agreements with some of the marketers and more are still ongoing. I don’t know the exact price, but if the price is not good, the marketers would not be coming to us,” the official stated.

He further indicated that the situation is improving, particularly with the Federal Government commencing the supply of crude oil to the facility.

Another official at the refinery showed one of the correspondents the trucks of some marketers loading PMS directly from the plant without involving the NNPC.

“Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated.

The official explained that due to the high demand for petrol in Nigeria and other regions, the refinery is focusing on producing 53% of PMS from its crude oil supplies.

“This could be reviewed in the future if the demand for other finished products increases more than the demand for petrol, but right now about 53% of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated.

When asked if marketers had indeed started purchasing petrol from Dangote without involving NNPC, a prominent oil marketer confirmed.

“Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” the marketer said.

However, this contradicts some reports suggesting that the refinery could not sell petrol to marketers unless the deal between it and the NNPC was terminated.

The PUNCH previously reported that the company had initially announced that the NNPC would be the sole off-taker of its petrol from September 15.

A refinery source mentioned that this was a decision made by the Federal Government. The same source expressed surprise when the Technical Subcommittee on “Domestic Sale of Crude Oil in Local Currency” announced on October 11 that marketers could now lift petrol directly from the refinery.

“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” stated the Minister of Finance, Wale Edun, who chairs the committee, in a statement.

Following the committee’s announcement, industry operators noted that the market had been fully deregulated and that they would now approach the refinery to apply for PMS lifting.

Recall that the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, recently led a delegation of officials to a meeting with the Vice President of Dangote Industries, Devakumar Edwin, in Lagos.

Although Fashola did not provide extensive updates about the meeting with Edwin, he expressed his gratitude for the roles Edwin had played.

“Edwin received us very well and promised to make things easier for IPMAN to do business with Dangote,” Fashola said.

Fashola further added, “We had a fruitful discussion with the group. We have started discussing modalities and other logistics. IPMAN has agreed to work with Dangote. We hope very soon we will start lifting products from the facility.”

However, IPMAN stated that it could not immediately begin off-taking products unless the refinery concluded its contract with the NNPC.

Nonetheless, refinery officials confirmed that the facility is already selling PMS to some marketers.

When the Dangote refinery started selling PMS on September 15, the NNPC claimed to have purchased the product at a rate of N898/litre, which the refinery described as misleading.

The refinery clarified that the “naira-for-crude” committee would be responsible for announcing the price of its PMS. As of October 22, the committee had yet to release an official price.

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Nigeria’s Super Eagles Move Three Places Higher To 36th Position In Latest FIFA Rankings

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The Super Eagles have risen three places in the latest FIFA rankings, reaching 36th globally. Nigeria’s victory against Libya in a “2025 Africa Cup of Nations (AFCON)” qualifier played a part in this improvement.

On the continental stage, Nigeria now ranks fourth in Africa, with Morocco leading at 13th in the world, followed by Senegal (20th), Egypt (30th), Nigeria (36th), and Algeria (37th).

FIFA also mentioned that “Comoros and Sudan” made significant strides, each climbing 10 places after recent wins in their “AFCON 2025 qualifiers.” Globally, “Argentina still occupy the top spot,” followed by France, Spain, England, Brazil, and Belgium.

Other notable movers include “Algeria (37th, up 4),” “Peru (38th, up 5),” and “Greece (42nd, up 6).” Additionally, Cameroon re-entered the top 50, moving to 49th place.

FIFA noted that “October 2024” was a particularly busy period, with “32 qualifiers for the FIFA World Cup 26,” “47 for the CAF Africa Cup of Nations 2025,” and multiple Nations League matches and friendlies contributing to shifts in the rankings.

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