21102019 - BORDER CLOSURE:‘How neighbouring countries worked against Nigeria’

24 — Vanguard, MONDAY, OCTOBER 21, 2019
CBN battles telcos over
new USSD charge
...directs banks to stop patronising them
THERE were indications that
a major battle is brewing between
the Central Bank of Nigeria
(CBN) and the telecommunications
operators in Nigeria over
the new Unstructured Supplementary
Service Data (USSD)
charges on customers.
This hint was dropped by the
Governor of CBN, Godwin
Emefiele, in Washinton DC,
United States of America, as he addressed
the media at the backdrop
of the just concluded World Bank/
International Monetary Funds,
IMF, Annual Meetings.
Emefiele the apex bank has already
directed banks to stop
patronising telecommunication
companies that implement the new
USSD charges.
This is coming on the heels of
the directive of the Minister of
Communication, Dr Isa Ali
Ibrahim Pantami, to the telecoms
to suspend the proposed charges.
The telcos had indicated their
intention to charge bank customers
N4 per second for USSD access
to banking services, with effect
from October 21, 2019.
Expressing the opposition of the
apex bank to the charge, CBN
Governor, Mr. Godwin Emefiele
said the charge is not necessary.
Emefiele who spoke alongside
the Minister of Finance, Zainab
Ahmed, said that since the telcos
are adamant on imposing the
charge, he has directed the banks
to move their services to any telco
that is ready to offer the service at
a lower or no charge.
Emefiele lamented that the CBN
had expressed its opposition to the
proposed USSD charge in previous
engagements with the telcos
and the banks, but was surprised
that instead of vacating the charge
they increased it by over 300 percent.
On the need for collaboration to
achieved the 80 percent financial
inclusion goal of the apex bank,
Emefiele said: “About five months
ago, you are aware that there is a
drive for us to deepen financial inclusion
in Nigeria. I had made my
commitments to Bill Gates Foundation
that we would deepen financial
inclusion and by 2020, the
rate of financial inclusion would
have accelerated to about 80 percent.
“At this time, we are close to about
65 percent moving from about 42
percent to 65 percent in about 18
months and we believe that we can
achieve this 80 percent if everybody,
that is the banks and telecom
companies cooperate with us.
About five months ago, I held a
meeting with some telecom companies
and leading banks in Nigeria
at the CBN office in Lagos
and the issue of the cost of USSD
came up. I hear it is N1500 per
minute and at that time, we came
to a conclusion that the use of
USSD is a sunk cost, meaning that
it is not an additional cost on the
infrastructure of the telecom companies.
“But the companies disagreed
with us and said it was an additional
investment in infrastructure
and for that reason, they needed
to impose it. I appealed to them to
please review this downwards and
they refused.
“I understand that about three
to four weeks ago, rather than reduce
it, they went ahead to increase
President Muhammadu Buhari
IMF MD - Kristalina Georgieva
I have told the banks
that they have to move
their businesses and
move their traffic to a
telecom company that
is ready to provide it at
the lowest possible
rate and if not at zero
cost and that is where
we stand and we must
achieve it
from N1500 to N4500 that is a 300
percent increase. I opposed it and
I have told the banks that we would
not allow this to happen. The banks
are the people who give these businesses
to the telecom companies
and I leave the banks and the
telecom companies to engage. I
have told the banks that they have
to move their businesses and move
their traffic to a telecom company
that is ready to provide it at the
lowest possible rate and if not at
zero cost and that is where we
stand and we must achieve it.”
CBN, IMF differ over impact of forex
restrictions on FDI inflow
THE Central Bank of Ni
geria, yesterday disagreed
with the position of
the International Monetary
Fund (IMF) on the impact of
the foreign exchange restrictions
on Foreign Direct Investment
(FDI) inflow into
the country.
CBN Governor, Mr.
Godwin Emefiele, while
speaking at a joint press conference
with the Minister of
Finance, Zainab Ahmed, at
the just concluded annual
meeting of the World Bank/
International Monetary
Fund (IMF) in Washington
DC, said rather than impeding
investment, the restriction
on forex supply to some
items should encourage investors
to set up manufacturing
firms for those items in
Nigeria.
He was responding to comments
last Tuesday, by Oya
Celasun, Division Chief, Research
Department, IMF,
who stated that the forex restrictions
imposed on 43
items by the CBN, is holding
back foreign investments
into Nigeria.
Highlighting the measures
required to boost economic
growth in Nigeria, while
speaking at a press briefing
on Tuesday Celasun, had
said: “Other areas are the
need for tight monetary
policy and simpler unified
exchange rate system. Foreign
exchange restrictions
have also been distorting
public and private sector decisions
and holding back investments.”
Reacting, Emefiele said
that the restrictions are on
items that can be locally produced
and will encourage
investors to tap into the
huge market represented by
EMEKA ANAETO &
BABAJIDE KOMOLAFE
REPORTING
Zainab Ahmed - Minister of Finance, Budget & National
Planning
CBN Governor - Godwin Emefiele
the nation’s population of
200 million people.
He stated: “ I say that (IMF
claim) is false. If you feel that
we are restricting access to
foreign exchange, for the
importation of items that can
be produced in Nigeria.
“If you are a foreign direct
investor that is interested
in doing business in Nigeria,
I will say instead of you
facilitating the import of
these items into Nigeria, we
want you to come and produce
it in Nigeria.
“Nigeria is a market of over
200 million people, so you do
not have a choice than to
come, bring your investment
plans and equipment, come
and produce that item in Nigeria
so that Nigerians can
consume it, you will make
your profit and take your
dividend out of the country.
So, I disagree with that
position.”