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BOFIA 2020 bars banks from hiring dismissed govt workers

Financial institutions are barred from employing or retaining an individual that was dismissed from either the federal, state or local government institutions.

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Nigerian banks have been barred from employing or retaining any individual that was dismissed from any of the three tiers level of government.

This was disclosed by the Banks and Other Financial Institutions Act, 2020, (BOFIA), which was signed into law by President Muhammadu Buhari.

According to the new law, financial institutions are barred from employing or retaining an individual that was dismissed from either the federal, state or local government institutions.

What BOFIA says

Its Section 47(2) partly reads;

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“No bank shall employ or continue the employment of any person as a director, manager, secretary or an officer who (a) is of unsound mind or, as a result of ill health, is incapable of discharging his duties.

(b) is dismissed from the service of the federal, state or local government or any agencies of such government or

(c) is declared bankrupt or suspends payments or compounds with his creditors, including his bankers;

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(d) is convicted of any offence involving dishonesty or fraud.

(e) is guilty of serious misconduct in relation to his duties; or (f) in the case of a person who possesses a professional qualification, is disqualified or suspended otherwise than of his own request from practising his profession by the order of any competent authority.”

Jail term for a banker that takes a gift to procure a loan

The law also prescribes a five-year jail term or a fine of N5mllion or both for any bank official who helps a customer to procure a loan in exchange for a commission or gift.

The gift collected by a banker found guilty would also be forfeited to the bank.

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Section 46(1) says, “Any director, manager, officer or employee of a bank or any other person receiving remuneration from the bank, who solicits, receives, consents or agrees to receive any gift, commission, employment, service, gratuity, money, property or thing of value for his own personal benefit or advantage or for that of any of his relations, from any person for-

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(a) procuring or endeavouring to procure for any person any advance, loan or credit facility from the bank

(b) the purpose of the purchase or discount of any draft, note, cheque, bill of exchange or other obligation by that bank… commits an offence and is liable to conviction to (i) a fine of N5,000,000 (ii) imprisonment for a term of five years or (iii) both such fine and imprisonment and, in addition, any such gift or other commission shall be forfeited to the bank.”

What it means

If duly implemented, the development is expected to restore Nigerians confidence, especially SMEs in assessing loan facilities.

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Business

FIRS rakes in N4.178 trillion revenue, achieves 98.6% of revenue target

FIRS has raked in the total sum of N4.178 trillion as revenue out of the personal target of N4.239 trillion.

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FIRS, Nigeria generates N424.71 billion VAT in Q3 2020

The Federal Inland Revenue Service(FIRS) has raked in the total sum of N4.178 trillion as revenue out of the personal target of N4.239 trillion – 98.6% of the revenue goal for the year.

This is according to a tweet by an aide to President Buhari, Lauretta Onochie, via her verified Twitter handle, as seen by Nairametrics.

READ: World’s biggest asset manager, BlackRock says Bitcoin will overtake gold

READ: Tesla up 500% in 2020, near $500 billion market value

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Commenting on the recent development, Lauretta Onochie said: “Executive Chairman, FIRS, Muhammad Mamman Nami says the agency has raked in ₦4.178T revenue out of the ₦4.239T target it set for itself -News.

“Meanwhile, @MBuhari exempted those on minimum wages & those who run small businesses from paying tax. That’s more money in their pockets.”

READ: FBN Holdings Plc posts Profit of N21.9 billion in Q3 2020

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Why it matters

Following the instability in the oil market and the recession that the country has found itself in, due to the impact of the COVID-19 pandemic, it is pertinent to explore other alternative sources of income, like taxation. This sort of news is also a cheering one, especially as it is in line with the present administration’s goal of creating viable alternative sources of revenue for the country.

What this means

With some weeks to go before the year ends, the result so far indicates that the agency has been proactive and worked assiduously well to achieve its objective. Attaining 98.6% of its target is no mere feat.

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Business

FG to buy only locally assembled vehicles for its use

The FG has disclosed plans to buy only locally assembled cars rather than imported foreign ones.

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FG to buy only locally assembled vehicles for its use, NEC sets up committee to address unemployment and improve national security, PEBEC, Twitter deactivate Yemi Osinbajo's Twitter account, How Nigeria's LPG sector can create 2 million jobs -Osinbajo, budget support, NEC okays $250 million investment in NSIA , MSMEClinic gets 200,000 capacity yam storage facility in Benue, Accusations of Yemi Osinbajo receiving N4 Billion from recovered loots are baseless- Presidency, FG rolls out N2.3 trillion survival funds for MSMEs; see criteria , Presidential Enabling Business Environment Council (PEBEC) reforms to boost investments – Osinbajo

The Federal Government has announced plans to buy only locally assembled cars and discontinue the purchase of imported foreign ones for its use, as part of its bid to promote its policy on the local auto industry.

According to a report by Punch, this was disclosed by President Muhammadu Buhari in a speech delivered by Vice President Yemi Osinbajo, on Monday, November 23, 2020, at the opening session of the 26th Nigerian Economic Summit Group (NESG) Conference themed: “Building Partnerships for Resilience”

READ: Airsmat berths artificial intelligence platform to improve farm output

Osinbajo also explained that the Federal Government would buy locally assembled cars rather than imported foreign ones.

In his response on the issue of import duties which was raised at the summit during his presentation, the Vice President explained that the reduction of import duty on vehicles would help reduce the cost of transportation.

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READ: Agriculture: CBN’s revised policy on the dairy industry

Osinbajo said, “The point of the reduction in levies on motor vehicles, commercial vehicles for transportation is to reduce the cost of transportation by reducing the cost of vehicles.

“With subsidy removal and the increase in fuel price and the pass-through to food prices, transportation costs had to be reduced. Now the automotive policy is directed at localizing the production of vehicles.

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READ: Court slams N5 million fine on Nigeria Customs Service for collecting duty on personal effects

“So, the logic was to increase the duty and levies, so that local production becomes more competitive. But the annual demand for vehicles is about 720,000 vehicles per year. Actual local production is 14,000 vehicles a year.”

Osinbajo pointed out that the country’s local production capacity is grossly inadequate to meet serious national needs and this would ultimately lead to higher prices of vehicles and more pressure on other sectors of the economy that depends on transportation.

READ: FG targets 22 non-oil commodities for export promotion

It can be recalled that in one of her outings, the Minister for Finance, Budget and National Planning, Zainab Ahmed, revealed that the major cause of the increase in inflation rate in the country is increased transportation costs.

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Osinbajo, however, stated that the government was not giving up on the local auto industry.

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Two important things to note, the first is that we still have a relatively high duty at 35 per cent; So, there is still a disincentive for importation,” he said.

READ: Elon Musk becomes World’s 3rd richest person

He added that the government was also promoting a policy of buying only locally manufactured cars. “The introduction of a new automotive policy in 2013, which is currently up for review, was geared towards discouraging the importation of wholly assembled automobiles and encouraging local production. It specifically allows local assembly plants to import completely knocked down vehicles at 0% import duty and semi-knocked down vehicles at 5% import duty, while importers will pay 70% on new and fairly used vehicles.”

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Beneficiaries of TraderMoni, others advised to repay their loans to get higher loans

Beneficiaries of GEEP have been advised to repay their loan to enable them get a higher loan and access to other products.

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Federal Government steps up TraderMoni beneficiaries to 5 million Nigerians

Beneficiaries of TraderMoni, FarmerMoni, MarketMoni under the Government Enterprise and Empowerment Programme (GEEP) have been urged to repay their loans in order to enable them to get a higher loan and to have access to other GEEP products.

The disclosure was revealed through a verified tweet by the government agency, as seen by Nairametrics. The call is also sequel to concerns over the repayment of the empowerment funds as stipulated in the terms and condition of disbursement

What they are saying

In response to the concerns and as a way of encouraging beneficiaries to comply, the Government Enterprise and Empowerment Programme (GEEP) through its verified tweet said: “Beneficiaries are advised to repay their loan to enable them to get a higher loan, and to have access to other GEEP products.”

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(READ MORE: Creative Industry: FG to disburse N7 billion to 35 firms)

How to repay the loan: The agency outlined practical steps for the repayment of these loans, which include;

Step 1: To repay the loans, beneficiaries were urged to walk into any of the listed banks; GTB, UBA, Ecobank, Union Bank, Stanbic, Sterling, Wema, Fidelity, Heritage, Jaiz.

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Step 2: Beneficiaries are instructed to report to any of the aforementioned banks, telling them that you would like to pay your ‘’BOI-GEEP’’ loan on PayDirect.

Step 3: Give them your phone number and the amount that you would like to pay.

(READ MORE: FG says Second Niger Bridge will be completed in 2022, project to cost N414 billion)

What you should know

The Government Enterprise and Empowerment Programme (GEEP) is an initiative of the Federal Government of Nigeria, and Africa’s largest microcredit scheme, 100% digitized. One of its products is the BOI-GEEP loan scheme, a Social Intervention Programme (SIP) of the Federal Government of Nigeria, executed by the Bank of Industry (BOI), a parastatal of the Federal Ministry of Industry, Trade and Investment. The interest-free loans range between  N10,000 and N100,000 for owners of microenterprises.

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The BOI-GEEP scheme extends to the MarketMoni, FarmerMoni, and TraderMoni.

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