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Restore Licences Of 47 Microfinance Banks Nationwide — Reps Urge CBN

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The House of Representatives on Wednesday urged the Central Bank of Nigeria to reinstate the functioning licenses of 47 microfinance institutions nationwide.

The call was made in response to the plenary’s acceptance of James Barka’s resolution, “Call to Investigate the Closure of Some Microfinance Banks Across the Nation.”

When introducing the motion, Barka, who represents Adamawa State’s Hong Federal Constituency, mentioned that the CBN had cancelled the operating licences of 47 microfinance institutions nationwide on May 22, 2023, including Biyama Microfinance Bank Ltd. in Adamawa State’s Hong Local Government Area.

He said: “The reasons cited in the communication include that the banks were either inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six months in contravention of the Banks and Other Financial Institutions Act 2020.

“The closure of Biyama Microfinance Bank, which is the only community bank in the Hong Local Government Area, has caused undue hardship to the people who depended on the banking and financial services offered by the bank for their small and medium enterprises.

“Closing down the only financial institution in a place where the people go through so much hardship to earn stipends to deposit, or to get small loans to run small businesses for survival would only frustrate them further and may push them into crime in order to survive.

“Hong is one of the Local Government Areas that was ravaged by Boko Haram insurgents, which left thousands of people without any means of livelihood, thus a deliberate bias of economic stimulating activities in favour of such communities would go a long way in helping to resuscitate their local economy”.

Barka said after the recapitalisation of the Biyama Microfinance Bank to the required N50 million share capital, the bank had been in operation, making all required reports and returns.

“The board of the bank and other stakeholders have reviewed the incident and written a formal complaint to the CBN, objecting to the revocation of their licence as, since regular visits from the CBN, the bank has never been accused of defaulting, neither has any examiner’s report been issued to show that the bank has offended any law, rules or regulations of any of the regulatory authorities.

“If the situation is not urgently resolved, the people will resort to keeping their money at home, which makes them easy prey for armed robbery and burglary.

“The people of Hong Local Government Area are predominantly farmers, and the rainy season is their most active season, thus the matter requires urgent attention”, he said.

Adopting the motion, the House mandated its Committee on Banking and Currency (when constituted) to investigate the recent revocation of the operational licences of microfinance banks across the country and report back within four weeks for further legislative action.

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BREAKING: Lagos Set To Lead Africa’s Climate Revolution, Tokunbo Wahab Unveils Bold Agenda Ahead Of “Blue Economy, Green Money” Summit

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The Lagos State Government has reaffirmed its commitment to transforming environmental challenges into economic opportunities, as preparations heighten for the 11th Lagos International Climate Change Summit themed “Blue Economy, Green Money: Financing Africa’s Coastal Resilience and Ocean Innovation.”

Speaking at a press briefing held earlier today at the Eko Atlantic Corporate Office in Victoria Island, the Honourable Commissioner for the Environment and Water Resources, Tokunbo Wahab, declared that “Africa is not waiting to be rescued we are ready to lead.”

Wahab highlighted Lagos’ massive investments in coastal defenses, flood mitigation, renewable energy, urban greening, and circular economy initiatives, noting that these efforts are positioning Lagos as a model for climate resilience across the continent.

The upcoming summit is expected to attract subnational governments, global institutions, investors, scientists, and innovators to design actionable, bankable solutions for Africa’s coastal and environmental challenges.

Wahab was joined at the briefing by Special Adviser on Environment, Engr. Olakunle Rotimi-Akodu, alongside permanent secretaries, heads of agencies, and other key officials in the ministry.

“Together, we are shaping a Lagos that not only adapts to change but leads it,” Wahab affirmed.

#BlueEconomyGreenMoney #ClimateChangeLagos #AGreaterLagosRising

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Bill To Create Ijebu State Scales Second Reading At House Of Reps

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A bill proposing the creation of Ijebu State in Nigeria’s south-west region has passed its second reading at the House of Representatives.

The proposed legislation, sponsored by Olufemi Ogunbanwo, who represents Ijebu Ode/Ijebu North East/Odogbolu Federal Constituency of Ogun State, along with three other lawmakers, was considered and approved for second reading during Thursday’s plenary session.

The bill seeks to amend the 1999 Constitution to carve Ijebu State out of the existing Ogun State. This development adds to the increasing number of proposals before the National Assembly advocating for the creation of new states across the country.

Benjamin Kalu, the Deputy Speaker, who presided over the session, subsequently referred the bill to the House Committee on Constitutional Review for further legislative action.

The National Assembly is currently in the process of reviewing the 1999 Constitution, and Kalu, who also chairs the committee overseeing the exercise, had earlier stated that the process is expected to conclude in December 2025.

However, creating a new state in Nigeria remains a difficult constitutional process. According to Section 8(1) of the 1999 Constitution, such a move demands broad legislative and public approval.

For a new state to be created, the proposal must first receive a two-thirds majority vote from lawmakers representing the affected area in both the Senate and the House of Representatives, as well as from members of the State House of Assembly and the local government areas concerned.

After securing legislative approval, a referendum must be conducted in the proposed area, with at least two-thirds of residents voting in favour of the new state. The result of the referendum must then be ratified by a simple majority of all State Houses of Assembly across the federation before final approval is given by a two-thirds majority of both chambers of the National Assembly.

No new state has been created in Nigeria since the country returned to democratic rule in 1999.

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House Of Reps Moves To Peg Rent Increases At 20% Nationwide

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The House of Representatives has urged the federal government to collaborate with state governments to regulate rent increases across the country.

The resolution was adopted during plenary on Thursday after a motion moved by Bassey Akiba, a lawmaker representing Cross River State, was debated and passed.

Akiba noted that the prevailing economic situation in the country has severely affected individuals, households and businesses, particularly those who rely on rented accommodation.

The lawmaker said there is often a “sudden surge in rent” in neighbourhoods where public infrastructure projects such as roads, markets and other amenities have been completed.

He cited instances in the Federal Capital Territory (FCT) where rent in certain areas jumped from N800,000 to N2.5 million per annum following new road constructions, describing the increase as a heavy burden on tenants.

According to him, the “wanton exploitation” by some landlords undermines the government’s efforts to improve citizens’ welfare through public infrastructure projects. He warned that the trend could push struggling Nigerians into desperation and crime.

Akiba stressed the need for a fair balance between property owners’ rights and tenants’ welfare, urging that rent control be introduced to promote stability in the housing sector.

Following the adoption of the motion, the House called on the federal government to increase investment in affordable housing schemes and expand access to low-cost homes to ease pressure on the rental market.

It also directed the Ministry of Housing and Urban Development to work with states to “enforce rent control measures, ensuring that public infrastructure projects do not lead to exploitative rent hikes, and cap rent increases at no more than 20 percent of the existing rent, irrespective of infrastructure improvements or other factors”.

The Committee on Housing and Habitat was mandated to ensure compliance and report back to the House within four weeks for further legislative action.

In a related development, stakeholders in Nigeria’s real estate industry had earlier warned that rising land costs remain a major contributor to the country’s growing housing deficit, urging government intervention to make housing affordable for low- and middle-income earners.

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