Month: June 2024

The Federal Mortgage Bank of Nigeria (FMBN) on Monday inaugurated seven specialised task teams to recover all the bank’s Non-Performing Loans (NPLs) nationwide.

While inaugurating the teams in Abuja, Chief Executive Officer/Managing Director of the bank, Shehu Osidi, said the move was to reduce non-performing loans.

Osidi said the move became expedient to safeguard the bank’s financial interests and sustain its lending operations.

He said that over the years, FMBN had played a crucial role in providing affordable housing finance to Nigerians, hence contributing significantly to advancing the national housing agenda and promoting the home ownership scheme.

‘However, the sustainability of these efforts hinges on our ability to recover loans effectively and reinvest them in future projects; unfortunately, the bank has performed poorly in this regard.

‘Loan recovery is a critical component of our financial management strategy.

‘This is to ensure that funds are available for disbursement to new beneficiaries
while maintaining the integrity of our lending operations.

‘Regardless of the successes recorded in our home delivery efforts, we must acknowledge the enormous challenges we face with our non-performing loans.

‘While some of the non-performing loans are due to infractions from external parties and factors, a huge chunk of blame also lies with us as internal stakeholders hand-in-hand with glaring administrative and operational inefficiencies.”

Osidi said henceforth, staff would be held accountable for the outcome of credit decisions over which they had played critical roles.

He said the strategy adopted by FMBN in the loan recovery endeavour was to follow a different path by challenging, ‘ourselves to deliver tangible results in pursuance and defense of our common destiny.

‘The inauguration of these task teams marks a significant milestone in our ongoing efforts to enhance the financial stability and operational efficiency of the bank,” he said.

Osidi added that part of the assignment of the task teams
includes conducting desk reviews of assigned loan portfolios, including the history of loans, houses available, state of collaterals, outstanding balances, and personalities behind the loans.

He explained that the teams are expected to look at the segmentation of the loans and the chances of recovery, develop an overreaching recovery strategy, engage relevant stakeholders, and use both conventional and informal, but acceptable strategies to carry out the recoveries.

He said in case the teams resorted to security agencies or the court, such action should not be made without the Executive Management’s approval.

Osidi observed that the team will be required to render regular updates and progress reports to the executive management and monitor and track the progress of debt recovery efforts.

He added that they will also implement measures aimed at preventing NPLs, developing risk mitigation strategies, and enhancing the credit assessment process, among others.

He said the teams were segmented along geo-polit
ical zones and each team would handle all delinquent loans within its jurisdiction.

He said Team One (FCT) would be led by Dr Kabir Yagboyaju as Chairman, Mr Jibo Ibrahim Chairman of Team Two (North-West), TLG Elayo, Chairman of Team Three (North-Central), and Mr Gbenga Babade, Chairman of Team Four (South-West).

Others included: Ms Oby Nwokedi, Chairperson of Team Five (South-East), Mr Nafada Ibrahim, Chairman of Team Six (North-East,); and Ms Felicia Aningo, Chairperson of Team Seven (South-South).

‘Speed is of the essence because each team has only 10 weeks to complete this assignment and deliver results.

‘That is two weeks for desk review and eight weeks for the assignment,’ he said.

Ms Chinenye Anosike, Executive Director, Business Development and Portfolio Management, FMBN, congratulated the members of the task teams.

She told the teams that they were carefully selected to deliver on the mandate.

Anosike, therefore, urged them not to pay lip service to the loan recovery task but to work hard and
use their expertise to deliver good results within the expected timeframe.

Mr Muhammed Abdu, Executive Director, Loans and Mortgage Services, FMBN, said the loan recovery task given to the teams was an onerous responsibility and an epoch-making exercise aimed at reinventing the growth, development, and future of the bank.

Abdu then assured the bank’s management of the team’s commitment to working in synergy, to be selfless, objective, time-conscious, and passionate about the job, to make the bank very proud and bigger at the end of the day.

Source: News Agency of Nigeria

The Central Bank of Nigeria (CBN), has announced revocation of the licence of Heritage Bank Plc with immediate effect.

This is according to a statement issued by Hakama Sidi-Ali, the Acting Director, Corporate Communications Department of CBN on Monday in Abuja.

Sidi-Ali said that the action was in accordance with the apex bank’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act.

This action became necessary due to the bank’s breach of Section 12 (1) of BOFIA.

‘The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

‘This follows a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

‘Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby, making the revocation of the licence the next necessary step,
‘ she said.

According to her, the CBN took the action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired.

‘The Nigeria Deposit Insurance Corporation (NDIC) is hereby appointed as the Liquidator of the bank in accordance with Section 12 (2) of BOFIA, 2020.

‘We wish to assure the public that the Nigerian financial system remains on a solid footing.

‘The action we are taking today reflects our continued commitment to take all necessary steps to ensure the safety and soundness of our financial system,’ she said.

Source: News Agency of Nigeria

At the foot of the destroyed bridge is a monument which reads: ‘We remember you who died at this bridge that we may live. Rest In Peace (24th Dec. 1969).’

The bridge is on the Achingalli-Udo-Na-Obizi-Umunwanwa-Ubakala road. It connects parts of Imo and Abia. It took a hit during the Nigeria civil war and for 55 years has been in ruins.

While the construction of second Niger Bridge has huge headlines over the decades, the hardship suffered by the commuters on the Achingalli-Udo-Na-Obizi-Umunwanwa-Ubakala road has gone unreported.

Therefore, no government has taken any practical step to restore the road and reconstruct the damaged bridge.

The closest the people of the area have used 21-kilometre road was in June 2020, when the Federal Executive Council of then President Muhammadu Buhari awarded contract of N11.540 billion for its reconstruction.

The contract included construction of 120 metres bridge close to the destroyed facility across the Imo River in Imo. Since, then nothing concrete has been done.

H
owever, since the inception of the President BolaTinubu’s administration, so much work has been done at the site and the people of the area are excited at the prospects of using the road again.

They also look forward to the contribution that the road would make in their socio-economic lives.

Eze Azubuine Obizie, the traditional ruler of Obizi in Ezinihite Mbaise Local Government Area of Imo, expressed happiness over the level of work done so far.

‘We are pleased that the job is going on; we owe much gratitude to the then Minister of Works, Mr Babatunde Fashola, who saw the need to give the road and the bridge back.

‘We are only praying and urging the government to continue so that the dividend of that project will be realised,’ he said.

Eze Obizie also expressed gratitude to Mr Amanze Uchegbulam, an indigene of Obizi for his efforts towards rehabilitating the road.

Obizie observed that he and his counterpart from the neighbouring Umunwanwa in Abia, had in 2017 wrote a letter to Fashola on the need to re
build the road.

Also, Eze Stephen Ihuoma, the traditional ruler of Umunwanwa, in Umuahia South Local Government Area, Abia, thanked Tinubu for carrying on with the project that was initiated by Buhari-led administration.

He said a site visit by Minister of Works, Mr David Umahi, was an indication of the president’s desire to complete the project.

According to Ihuoma when completed the road will make travel from Umuahia to Owerri easier.

However, the traditional ruler expressed concern over the slow pace of work at the Umunwanwa axis, and urged the government to put more effort.

He said: ‘The tarred section in Umunwanwa is not up to half kilometre and my people are suffering it because from the spot where they stopped work to the bridge head is bad.

‘Without the intervention of the communities about three years ago that road would have been a different thing all together.

‘My people are united in ensuring that the project is completed but I am appealing to the Federal Government to let my people feel th
e tarred portion of the road’, he told NAN.

Meanwhile, Mr Dennis Orji the consultant for the project and a former Director, Federal Ministry of Works, said erosion at Umunwanwa posed a major challenge to the project.

He said that the Federal Ministry of Works was considering an augmentation to be able to tackle the challenge.

As for the completion period, he said that it was difficult to determine when the project would be completed considering various potential challenges, including weather.

The consultant said that Imo and Abia belong to the rainforest and as a result not much would be achieved starting from May because of heavy rain.

He affirmed that the bridge construction was still going saying ‘we at the piling stage and once the bridge is done we will focus on the road.’

‘But there is a remarkable progress and the Federal Government is trying because the road is being funded through Skukuk.

‘Of course, governance is a continuum and luckily they are of All Progressives Congress party.

‘I think i
f there must be progress there must be continuity, otherwise there will be so many abandoned projects.’

Ongoing construction of a new bridge at Imo River

Also, Eze Stephen Ihuoma, the Traditional Ruler of Umunwanwa, in Umuahia South Local Government Area, Abia, thanked Tinubu for carrying on with the project that was initiated by Buhari-led administration.

He said that the visit to the project site by the Minister of Works, David Umahi, was a clear indication of the president’s interest to see that the road was completed.

According to Eze Ihuoma, the road when completed will make travel from Umuahia to Owerri very simple and will ease trade between Imo and Abia.

However, the traditional ruler expressed concern over the slow pace of work at the Umunwanwa axis, and urged the government to put more effort.

He said: ‘The tarred section in Umunwanwa is not up to half kilometre and my people are suffering it heavily because from the spot they stopped work to the bridge head the road is bad.

‘Without the inte
rvention of the communities about three years ago that road would have been a different thing all together.

‘My people are united in ensuring that the project is completed but I’m appealing to the Federal Government to let my people feel the tarred portion of the road.’

Meanwhile, the Consultant, Mr Dennis Orji, a former Director at the Federal Ministry of Works, admitted that the serious erosion problem at Umunwanwa was one of the challenges to the project.

He said that the Federal Ministry of Works was considering an augmentation to be able to tackle the challenge.

As for the completion period, he said that it was difficult to determine when contracts and projects would be completed in Nigeria considering the problems of funding and weather.

The consultant said that Imo and Abia belong to the rainforest and as a result not much would be achieved starting from this month(May).

He affirmed that the bridge construction was still going saying ‘we at the piling stage and once the bridge is done we will foc
us on the road.’

Orji continued; ‘But there is a remarkable progress and the Federal Government is trying because the road is being funded through Skukuk.

‘Of course, governance is a continum and luckily they are of All Progressives Congress party.

‘I think if there must be progress there must be continuity, otherwise there will be so many abandoned projects.’

Completed section of the road at Achingali

Rep. Emeka Chinedu, Member representing Ahiazu /Mbaise Ezinihite Federal Constituency at the House of Representatives, expressed happiness for the progress on the road.

He also thanked Tinubu for his efforts in sustaining the road as well as Fashola for his critical role in the award of the contract.

Chinedu recalled that the road was approved by 9th Assembly but was not funded in the budget.

He said that he and Chief Sam Onuigbo, former member representing Ikwuano/Umuahia North/Umuahia Federal Constituency in the House of Representatives also met Fashola to facilitate the project.

The lawmaker, who is
the Chairman, House Committee on the Federal Character Territory, equally commended the Minister of Works, Mr David Umahi, for his commitment in ensuring that the road was completed.

‘If you go on inspection there you will see the level of progress recorded.

‘That road is so significant to Imo and Abia because it is a link road between the two neighbouring states.

‘If it is completed there is going to be heavy trade relationship between the two states and that will bring a lot of economic benefits to the people,’ he said.

Corroborating him, the ex-lawmaker, Onuigbo, said the completion of the bridge and the road would go a long way in enhancing the economic fortunes of the people.

Onuigbo, who represents South-East on the Board of the North-East Development Commission, said that it was important road that Tinubu administration was executing the project as part of his Renewed Hope agenda.

He said the government should be commended for taking up the project even when Tinubu did not get win South-East stat
es in the 2023 general elections.

‘Another reason for the commendation is that the bridge being reconstructed was one of the bridges destroyed during the 1967-1970 civil war.

‘Therefore, continuing with this project without abandoning it is a sign that President Tinubu is focused on the overall development of Nigeria.

‘I must also commend the minister, Umahi for visiting the site and working tirelessly to see that the project see the light of the day.’

Interestingly, Mr Amanze Uchegbulam, former First Vice President of Nigeria Football Federation also heaped praises on Tinubu and Fashola.

He said that he would eternally remain grateful to Fashola, whom he described as his friend and teammate at Eagle Club Surulere, for granting his request.

‘I really thank the Federal Government because our people have suffered for over 50 years from 1969-2019, when nobody cared for us.

‘My people are so happy for this project and they wanted to give me an award but I refused to take it.

‘I told them that I would not
take any award until the road was completed and we drive on it,’ said Uchegbulam, a former Vice President of Confederation of Africa Football Appeal Committee.

A commercial motorcyclist, Mr Izuchulwu Ukuwa, who plies the road is excited that the project would completed soon and urged the government to step up its effort.

Ukuwa, the Youth Leader of Umuoke in Umunwanwa, said that the road was very significant because it links some states including Imo, Abia, Enugu.

‘Our people are known for agriculture, especially cassava farming. If this road is completed it will help us in transporting our farm produce to the market.

‘I’m very happy that the government has remembered us and I pray that it try its best to complete the project,’ he said.

A commercial bus driver, Mr Valentine Chukwu, a native of Umuawada Onicha Mbaise, commended the government for committing to the project, especially the bridge.

‘When I was younger, it was plank that was used to cover up that bridge.

We were always scared whenever my fat
her carried me and my siblings through it on his motorcycle to take us in our primary school.

‘So the fact that the government is now constructing the bridge gives me joy. When the road is completed it will help our people in their daily businesses,’ Chukwu said.

Source: News Agency of Nigeria

President Cyril Ramaphosa says the 16 million citizens, who cast their vote in the National and Provincial Elections, are proof that South Africa’s democracy is ‘strong and robust’.

The President was addressing the nation through his weekly newsletter on Monday.

South Africans headed to the polls last week to elect new government leadership for the seventh administration in the country’s most competitive elections since the dawn of democracy in 1994.

‘This election has been declared free and fair. It took place peacefully and without serious incidents of intimidation or violence. This is a credit to the Electoral Commission, to the political parties and their leadership, and above all, to the South African people.

‘By discharging this important civic duty, South Africans have done more than exercise their right to vote. They have shown that they continue to hold our democratic order and our Constitution in high regard. This successful poll shows that our democracy is strong, that it is robust and that it
endures,’ President Ramaphosa said.

READ | Government welcomes conclusion of elections

Constitutional order

In this year’s vote, no party won an outright majority in the National Assembly.

This, President Ramaphosa said, presents a ‘new phase in our democratic journey’ in which ‘political parties will have to strive in earnest to find common ground as we work to rebuild our country’.

‘Although every political party carries a mandate based on the commitments they made to the electorate, all parties share an overarching mandate to build a country that is inclusive, united and prosperous.

‘This moment in our country calls for responsible leadership and constructive engagement. There can be no place for threats of violence or instability,’ he said.

The President called on South Africans to fight for and protect the country’s constitutional order – South Africa’s supreme law.

‘This constitutional order is anchored in the rule of law, supported by institutions for advancing democracy, such as the Independen
t Electoral Commission, and upheld by an independent judiciary.

‘South Africans must stand firm against any attempts to undermine the constitutional order we have worked so hard to build, and for which so many struggled and sacrificed.

‘Whatever challenges we may face as political events unfold, they should be dealt with in a spirit of cooperation and in accordance with the prescripts of our Constitution and the rule of law,’ he said.

READ | 2024 election results a victory for democracy

The President added that all South Africans should take pride in ‘our own contribution towards giving meaning to the values and principles of our constitutional democracy’.

‘As we work as political parties to find each other across the divide in the coming weeks and months, let us demonstrate both in our actions and our utterances that we hold the Constitution and the rule of law to be paramount. Let us remember that whatever authority, whatever power, we are entrusted with must be exercised to advance the interests of th
e South African people.

‘Now more than ever, we need to put our differences aside and work together for the common good,’ President Ramaphosa concluded.

Source: South African Government News Agency

On Monday, 03 June, there are no events are confirmed.

On Tuesday, 04 June, Statistics South Africa will release the Gross Domestic Product (GDP) quarter one 2024.

On Wednesday, 05 June, there are no confirmed events.

On Thursday, 06 June, there are no confirmed events.

On Friday, 07 June, there are no confirmed events.

Source: South African Government News Agency

Following the successful 2024 National and Provincial Elections held last week Wednesday, plans for the establishment of the country’s seventh democratic Parliament now get into full swing.

Explaining the next step after the elections concluded, Parliamentary spokesperson, Moloto Mothapo, said Parliament is fully prepared, and all the necessary arrangements have been made for establishing the new National Assembly.

‘Comprehensive plans are in place to ensure a seamless transition, including onboarding new Members of Parliament,’ Mothapo said in a statement.

Mothapo noted that in democratic countries such as South Africa, Parliament plays a crucial role in making legislation and holding the government to account.

‘Under a proportional representation electoral system, Members of Parliament (MPs) are elected to represent the people of the country and act as their voice. Parliament, therefore, is accountable to the people of South Africa,’ Mothapo said.

Mothapo explained that every five years, the people of
South Africa have the opportunity to cast their votes for a new Parliament, and each new five-year term of Parliament is numbered.

This has happened in the elections of 1994, where people voted for the first democratic Parliament. The second Parliament followed the General Elections in 1999, with the third Parliament in 2004, the fourth in 2009, with the fifth Parliament in 2014 and the sixth in 2019.

On Wednesday, 29 May, South Africans cast their votes in the country’s seventh democratic election to determine which political parties and, for the first time, independent candidates, will represent them in Parliament and the Provincial Legislatures.

Mothapo said as the legislative authority of the democratic republic, the National Assembly must ensure a government by the people by choosing a President, providing a national forum for public consideration of issues, passing legislation, and exercising oversight over the executive’s actions.

He said the National Assembly may be constituted with no fewer than
350 and no more than 400 members.

‘The National Assembly is elected for a five-year term according to Section 49 of the Constitution. When the term expires or the Assembly is dissolved, the President must call an election within 90 days.

‘Although the term of this Assembly expired on 21 May, it continued to function until the day before the first day of the elections, which was midnight on 28 May.

“Currently, there is no National Assembly, and the process to establish the new House has commenced,’ Mothapo explained.

Handling of election results

The election results must be declared within seven days after an election, in terms of Section 57 of the Electoral Act. Following this, members of the National Assembly are designated by the Independent Electoral Commission, and the Commission then hands these lists to the Chief Justice of the Republic of South Africa, who then hands them over to Parliament.

First sitting of the National Assembly

The first sitting of the National Assembly must occur no more than
14 days after election results are declared, and the Chief Justice of the Republic, Raymond Zondo, will determine and gazette the date for this sitting.

Mothapo explained that before members of the National Assembly perform their functions in the Assembly, they must swear or affirm faithfulness to the Republic and obedience of the Constitution, under Schedule 2 to the Constitution.

‘After the swearing in of members, the Chief Justice presides over the election of the Speaker of the National Assembly, who must, in turn, preside over the election of the Deputy Speaker of the National Assembly.

“The President of the Republic is the last to be elected by the House because the Assembly must be duly constituted first to exercise its power to elect the President. The Chief Justice presides over the election of the President,’ Mothapo said.

Rules for the first sittings gazetted

Mothapo said the Office of the Chief Justice has officially gazetted the rules for the first sittings of the National Assembly.

The rul
es, as approved by Chief Justice Zondo on 27 May 2024, outline the procedures for the election of key parliamentary and provincial officials, including the President, the Speaker and Deputy Speaker of the National Assembly, and the Chairperson and Deputy Chairpersons of the National Council of Provinces.

Election of the President

Mothapo said the election of the President, who is chosen among the members of the Assembly, is conducted by the Chief Justice of the Republic and when elected President, a person ceases to be a member of the National Assembly.

‘Within five days, he or she must assume office by swearing or affirming faithfulness to the Republic and obedience to the Constitution at an inauguration ceremony,’ he explained.

Term of the President and Executive

The term of the President, along with the members of the Executive, only ends when the new President is sworn into office by the Chief Justice of the Republic.

‘This is usually during the inauguration ceremony after the National Assembly has
elected the President. This is intended to ensure there is no gap in the country’s administration between the election and the assumption of office by the incoming President.’

Opening of Parliament Address

Once the President has assumed office, Mothapo said he or she must appoint the Cabinet, and the President, in conjunction with the Speaker of the National Assembly and the Chairperson of the National Council of Provinces, determines a date for the Opening of Parliament Address.

According to the new joint rules of Parliament, the Opening of Parliament Address (OPA) is now distinct from the State of the Nation Address (SONA).

‘The State of the Nation Address is held annually in February to outline the government’s plans and priorities for the year and report on the state of the nation. The Opening of Parliament Address, on the other hand, occurs once every five years, after elections, to announce the new administration’s plans and to mark the beginning of the new five-year parliamentary term.

‘The Openin
g of Parliament is more than a ceremonial occasion – it is a platform where the government’s vision and priorities are presented, setting the tone for the legislative and administrative actions that will follow. It also symbolises the functioning of the new Parliament, reflecting the continuity and stability of governance,’ Mothapo said.

Orientation of new MPs

Mothapo said the newly elected MPs are inducted and oriented through a structured orientation programme, which includes briefings on parliamentary procedures, ethical guidelines, legislative responsibilities, and administrative processes.

‘The orientation also often involves training sessions on effective communication, law-making, and constituency management, ensuring that new MPs are well-prepared to fulfil their roles effectively,’ he said.

Venue for the first sitting

Mothapo said the first sitting and onboarding venue has been secured at the Cape Town International Convention Centre (CTICC).

He said Parliament will, in due course, provide the
comprehensive process that will be followed in establishing the National Council of Provinces of the seventh democratic Parliament.

Source: South African Government News Agency