CBN orders 4 banks to suspend payment of MTN dividends — By Louis Iba

The crisis rocking South African telecoms company MTN Group’s operation in Nigeria worsened yesterday as the Central Bank of Nigeria (CBN) ordered four Nigerian banks to suspend all forms of dividend payment from MTN Nigeria.
This comes as the CBN spokesman Isaac Okoroafor, in a text message to Daily Sun denied knowledge of the suspension order. “I am not aware of such order, Okoroafor said.
It was however learnt that the suspension order by the apex bank followed recent allegations by the Nigerian Senate that MTN Nigeria, a subsidiary of the MTN Group had repatriated about $13.97 billion out of Nigeria illegally between 2006 and 2016. It is the second time in just two years that the telecoms giant will be battling with allegations of flouting regulatory laws in Nigeria. Earlier in the year, the Federal Government had to slash an initial fine of $3.9billion imposed on MTN to N330 billion over its failure to disconnect unregistered mobile phone users as was directed by the Nigerian Communication Commission (NCC).
But MTN Group in a quarterly update to shareholders made available to journalists yesterday, said it was not guilty of the latest allegation of illegal dividend repatriation leveled against it by the Nigerian Senate, stressing the claims were totally unfounded and without merit.
Addressing the latest developments on the alleged illegal repatriation of $13.97 billion by the MTN Group, the telecoms firm disclosed that the CBN had ordered the four commercial banks, operated by it, to suspend dividend payout from Nigeria.
“MTN Nigeria, four commercial banks, certain MTN Nigeria directors and shareholders, the Central Bank of Nigeria and others appeared before the Senate on October 20, 2016, at the outset of this investigation,” the statement read.
“The allegations are that $13.97 billion was repatriated illegally by MTN Nigeria through its bankers. MTN Nigeria and its bankers are cooperating with the investigation with a view to resolving the matter as expeditiously as possible.
“In the interim, the CBN has instructed the banks to suspend any remittances of dividends until further notice. MTN Nigeria continues to refute the allegations that it had improperly repatriated funds from Nigeria,” the statement added.
Meanwhile, Citigroup has issued a statement denying being involved in any illegal foreign currency transfer on behalf of MTN Group, according to a presentation the U.S. bank gave to the Nigerian parliament.
“We wish to state categorically that Citibank Nigeria Limited was at no time involved in any illegal foreign currency repatriation on behalf of MTNN (MTN Nigeria) or any other customer,” Citibank said in a presentation to the parliament.
MTN Nigeria has also said it will strongly defend any action that would be prejudicial to its interest. “MTN Nigeria has no intention to make any dividend payments over the next six months,” the company said.
It also said it remains committed to the payment of the N330 billion fine related to the late disconnection of ‘improperly registered’ SIMS, adding that its subscriber base increased by 1.5 million in three months.

Culled from The Sun

World Bank forecast $55 per barrel oil price for 2017 — By Amechi Ogbonna

The World Bank has raised its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel.
The hike in oil price forecast for next year is coming on the heels of strategies adopted by members of the Organization of the Petroleum Exporting Countries (OPEC)   to limit production after a long period of unrestrained output.
Energy prices, which include oil, natural gas and coal, are projected to jump almost 25 percent overall next year, a larger increase than anticipated in July.
The revised forecast is contained in the World Bank’s latest Commodity Markets Outlook. Oil prices are expected to average $43 per barrel in 2016, unchanged from the July report.
“We expect a solid rise in energy prices, led by oil, next year,” said John Baffes, Senior Economist and lead author of the Commodity Markets Outlook. However, there is considerable uncertainty around the outlook as we await the details and the implementation of the OPEC agreement, which, if carried through, will undoubtedly impact oil markets.”
A modest recovery is projected for most commodities in 2017 as demand strengthens and supplies tighten.
Metals and minerals prices are expected to rise 4.1 percent next year, a 0.5 percentage point upward revision due to increasing supply tightness.
Meanwhile, zinc prices are forecast to rise more than 20 percent following the closure of some large zinc mines and production cuts in earlier years. Gold is equally projected to decline slightly next year to $1,219 per ounce as interest rates are likely to rise and safe haven buying.

Culled from Sun

Money laundering: NDLEA intercepts €325,640, $30,000

Officials of the National Drug Law Enforcement Agency (NDLEA) have intercepted €325,640 as well as $30,000, about N175 million being smuggled from Greece and Austria.

The suspected laundered money concealed in envelopes and shoes were seized at the Murtala Muhammed International Airport (MMIA) Lagos during the inward screening of passengers on a Turkish Airline flight. Two suspects have been arrested in connection with the smuggled currencies.

NDLEA commander at the Lagos airport, Ahmadu Garba, said the money was found during routine search of passengers. “During the inward screening of passengers on a Turkish flight, we discovered €325,640 and $30,000.

“Two suspected passengers, Edos Nicholas found in possession of €279,190 and Hallowell Prince Lovely, found in possession of €46,450 and $30,000 were also apprehended,” Ahmadu said.

Muhammad Mustapha Abdallah, chairman/chief executive of the NDLEA, had directed the director of Assets and Financial Investigation of the Agency, Victoria Egbase, to take over the investigation.

According to Abdallah, “this is a suspected case of money laundering. Criminal groups seek to conceal the origin of illegally obtained money. It is pertinent therefore for us to trace the origin of the money and prevent the introduction of criminal funds into the economy. Consequently, I have directed that the case be meticulously investigated.”

Preliminary investigation reveals that both suspects are frequent travellers who are the target of International Drug Trafficking Organisation. Besides, their sources of income must be verified.

Culled from Business Day