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CBN DORMANT ACCOUNT POLICY TRIGGERS ANXIETY IN BANKING SECTOR

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Banks and their customers have raised concerns over the Central Bank of Nigeria’s proposed plan to mop up funds from dormant accounts. While the proposal is not new, stakeholders argue that it could potentially have unintended consequences on the banking sector, reports Oluwakemi Abimbola

The bank account of a deceased man, Oluwanisola Yekini, has been dormant since he died in 2020. The quarrels among his polygamous family have prevented them from concluding the process that would give them access to the money in the account. They fight over who should get the money.

While Yekini’s eldest son feels that the funds in the account should automatically belong to him and has held onto his father’s death certificate (one of the required documents to access the account), his step-siblings know the account number and were seeking an equal share of the funds. Neither of the parties knew who their late father’s next of kin is or the amount of money in the said bank account, as he died intestate, which means Yekini had no will before the died.

Informed about the proposal of the Central Bank of Nigeria for money in funds in dormant accounts, Taiwo Yekini, one of the sons of the deceased, felt that it was not a bad idea if their father’s money ends up with the government.

“I don’t mind if the CBN takes over the funds but who knows we may have resolved our problems before then,” he said.

The CBN had released an exposure draft guideline proposing that banks and other financial institutions should transfer funds in accounts that have been dormant for up to 10 years into a trust fund account.

A circular, signed by the Director of the Financial Policy and Regulation Department of the apex bank, Chibuzor Efobi, which accompanied the exposure draft, stated that the proposed guidelines were in response to requests from banks and other stakeholders for the CBN to clarify the procedures for the management of dormant and inactive accounts by banks in the country. The circular, which was dated April 6, 2023, also called for inputs, which should be sent within three weeks.

The draft states that banks and other financial institutions are expected to transfer all unclaimed funds into an Unclaimed Balances Trust Fund pool account, which will be domiciled at the CBN.

The apex bank said the balances would be invested in government securities like Treasury Bills and would be returned to the beneficiaries not later than ten days of notice.

The draft guidelines said, “The Central Bank of Nigeria shall open and maintain an account earmarked for the purpose of warehousing unclaimed balances in eligible accounts. The account shall be called the ‘Unclaimed Balances Trust Fund Pool Account.”

The eligible accounts and financial assets are current, savings and term deposits in local currency; domiciliary accounts; deposits towards the purchase of shares and mutual investments; prepaid card accounts and wallets; proceeds of uncleared and unpresented financial instruments belonging to customers or non-customers of FIs; unclaimed salaries and wages, commissions, and bonuses.

Others include proceeds of stale local and/or foreign currency drafts not presented for payment by beneficiaries; funds received from a correspondent bank without sufficient details as to the rightful beneficiary and/or a recall of funds made to the remitting bank to which the Nigerian bank’s account has not been debited and a judgment debt for which the judgment creditor has not claimed the amount of judgment award.

However, exempted from the proposed unclaimed fund trust fund are government-owned accounts; accounts that are subject to litigation; accounts under investigation by a regulatory authority or law enforcement agency; and encumbered accounts including, but not limited to collaterals and liens.

This is not the first time that the state is attempting to take over unclaimed funds. In the signed Finance Act 2020, the Federal Government revealed plans to borrow unclaimed dividends and funds in dormant account balances banks. This was disclosed under Part XII of the Companies and Allied Matters Act in the Finance Act. This led to an outcry against the move.

A non-governmental organisation, Socio-Economic Rights and Accountability Project filed a lawsuit against the Federal Government in this regard.

The Finance Act of 2020, which also set up the Unclaimed Dividends Trust Fund, got reactions from capital market stakeholders, who felt that the government was aiming to reap where it had not sown and insisted that unclaimed dividends should be returned to the companies that generated the dividends in the first place.

Reacting to the development in 2020, the Independent Shareholders Association of Nigeria, in a statement said, “It is nothing short of expropriation, which the constitution forbids. Dividends, including unclaimed dividends, are funds generated by private companies and made available to its shareholders in line with the provisions of Companies and Allied Matters Act Companies and Allied Matters Act.”

The shareholders argued that it was overreaching and unacceptable for the government to seek to expropriate the unclaimed dividends under the subterfuge of any revenue.

They noted that companies and individuals had a right to private property and assets; which unclaimed dividends funds fell into.

Reacting to the latest move by the CBN, the Chairman of the Bank Customers Association of Nigeria, Dr Uju Ogubunka, said that it was not okay for the central banker to take over individual funds under any guise.

He said, “CBN cannot appropriate people’s money just like that. I don’t think it is the right thing to do. Maybe, what is right is for CBN to seek individual approval from those people that have those accounts.

“Some of these accounts that you may regard as dormant are not necessarily dormant. They may be just accounts opened for the education of a growing child. Someone deposits money into an account and leaves it there until the child gets to a certain age, where there is a need to use that money. That doesn’t make the account dormant. It is an account set aside for a purpose.”

Ogubunka also expressed concern about the effect of pulling out the funds in dormant accounts from the deposit portfolio of banks and other financial institutions, arguing that some banks may become distressed if the move is approved.

“I can bet that in some banks, with this kind of definition of a dormant account, (there may be) huge amounts involved. If you take such amounts out of a bank, that bank may likely go distressed because you are going to create holes in the deposit portfolio of the bank and this bank has given credits that people have not yet paid back,” he noted.

Ogubunka’s stance was corroborated by a banker, who spoke anonymously with The PUNCH.

He also slammed the CBN for creating unnecessary panic in the banking system, which had not yet recovered from the naira redesign crisis.

He claimed had created anxiety in banks, making them deal with fears of their customers’ funds in dormant accounts being taken over by the regulator.

The banker said, “A lot of monies that are in those old banks; the owners are late. You know those days when marriages are concerned, people don’t disclose what they have in banks to their spouses, not like now. A lot of those old banks are strong today because of the money of those dead people. We have the issue of dividends from the stock market too.

“At my bank yesterday (Tuesday), I know the billions of naira they told us are in dormant accounts. It will cause a lot of trouble if you pull out such funds. It will cause a lot of trouble, and distress in the banks.”

Bashing the CBN, the banker said the regulator was dabbling into customer relations and by extension, the business of the customers instead of coming up with policies that will be of benefit to Nigerians.

“I have been in this banking sector for 22 years and I see that CBN as our regulator has tried to get involved in the business of customer relations. I have my money in the bank. I can decide not to come to the bank for one year. There are a lot of people who do that. You know, if you don’t come to the bank for one year, the account goes dormant. Some people in the villages just decide to keep their monies in the bank, some people are abroad.

“They are just creating unnecessary panic in the system. Some people intentionally kept their accounts dormant in Nigeria. There are a lot of policies that the CBN needs to do for the benefit of Nigerians. It is not this kind of policy, where the CBN wants to poke its nose into what the banks are doing, and what the customers are doing,” he averred.

The banker also blamed the demand for Bank Verification Numbers as one of the reasons for the increase in dormant accounts as well as family disputes following the death of a relative.

He explained, “What led to the high number of dormant accounts recently is the issue of Bank Verification Numbers. A lot of Nigerians abroad, don’t have means of doing BVN. Even the few centres aboard, for you to go and do BVN there, you have to spend a lot of money. So, a lot of them over there have refused to do BVN. They are sending money home and their accounts are dormant and they are okay with it. They know that anytime they come home, they will do BVN and start running the account.

“This is a policy that is counterproductive. I don’t see it working.”

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EEDC NOTIFIES CUSTOMERS OF PLANNED PREPAID METER UPGRADE

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Below is an official statement to that effect:

The Enugu Electricity Distribution Company PLC (EEDC) has notified its customers that by 24th November 2024, all prepaid meters in its network will cease to accept credit tokens, unless they are upgraded.

This is as a result of a software upgrade which will be affecting all Standard Transfer Specification (STS) compliant prepaid meters across the globe.

The upgrade will be implemented through a special ‘reset token’ known as “Key Change Token” (KCT), which will be loaded on their meters, to have them upgraded.

Customers of EEDC that are using prepaid meters are therefore advised to ensure that their meters are upgraded before the set date of 24th November 2024, to avoid losing them.

The management of EEDC appeals to its customers to remain calm and not panic, as they will be notified of the process and modalities for the upgrade.

For enquiries and further clarification, customers are to call: 084 700 100, SMS/Whatsapp: 0815 082 6060 or 0815 082 6061, or send email to: customerservice@enugudisco.com

EMEKA EZEH
HEAD, CORPORATE COMMUNICATIONS, EEDC
24/07/2023

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[TACKLING HARD TIMES] HERE ARE VEGETABLES YOU CAN GROW IN POTS ON YOUR BALCONY

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Today, many Nigerians are particularly challenged as to how to make ends meet. It is therefore important to think of simple and creative ways to boost your standard of living without spending more. As vegetables are what we need all the time, sourcing them can be quite expensive and time-consuming too.

But you can create your own little garden within the building and have fun too in having handy those fresh veggies you desire. This is all too easy if you have water as we already have enough sunlight here to provide the ideal weather needed for the plants to grow and do well.

hot peppers growing in a container

Indeed, there are many people that would love to start a vegetable garden but simply don’t have the outdoor space to do it. These days, many people live in apartments and high rises and simply don’t have any outdoor space to work with for gardening. Luckily, gardeners are no longer relegated to building raised beds or starting in-ground gardens, and there are a wide variety of vegetables that are well-suited to container gardening. 

Growing vegetables in containers gives you the option of creating a vegetable garden on your balcony or patio, or even indoors near a sunny window.

Just about every vegetable that you could ever want to grow outdoors in a garden can also be grown in a container garden on your balcony, and your vegetables will thrive in containers as well, as long as you provide the proper growing conditions and care, and select a container that is large enough to house the plant comfortably, and allows plenty of space for its roots to expand as it matures. 

In this article, we’ll tell you which vegetables are great for growing in pots in a balcony or patio garden setup, go over each vegetables basic growing preferences, highlight the best varieties of each vegetable for container gardening, and finally, we’ll give a few tips and pointers about starting your own balcony vegetable garden.

red tomatoes

TOMATOES

Tomatoes are some of the easiest vegetables to grow in containers. As long as you have a location that receives at least five to six hours of sunlight per day, you can grow tomatoes in your balcony container garden with ease. If you have limited space, try growing a dwarf variety, or cherry tomatoes instead of one of the larger tomato varieties. Tomato varieties that are well suited to container gardening include Patio Princess, BushSteak, Sweetheart of the Patio, Tumbler, and Glacier. 

For more on how to grow tomatoes in containers, click here.


BEANS

Pole beans and bush beans are both well-suited to container gardens. All you need is a spot that gets lots of sunlight, a pot that is at least one foot deep, and a trellis-like structure for the vines to grow on (for climbing varieties), and you can expect to see a good crop of beans that are ready to harvest within just a few short weeks. Good bush bean varieties to grow in containers include Bush Blue Lake, or Contender. For pole beans that are well-suited to containers, try Cherokee Trail of Tears. For green bean varieties that grow well in pots, try out Mascotte Green Beans.  

For more information on how to grow green beans in containers, click here. For more on how to grow other types of beans, click here.


PEPPERS

Aside from tomatoes and radishes, peppers are the easiest vegetable to grow in containers, and they are voracious producers as well. You will need to provide a large, deep pot, preferably at least one foot deep for ideal growth. Keep your peppers in full sun and start providing fertilizer when the plant flowers until it is done producing fruit. The best pepper plants for containers are Jalapeno, Yellow Spice Jalapeno, Early Jalapeno, Shishito, Poblano, Bolivian Rainbow, Numex Twilight, Fushimi, and Devil’s Tongue peppers

To learn more about growing hot or sweet pepper plants in containers, click here.

CARROTS

Carrots are easy to grow in containers as long as you select the right varieties. You want to pick carrots that are short instead of the standard carrot types, as the standard carrot varieties need more room for their roots to grow. Also, make sure to select a container that is deep enough to support their long taproots. Avoid overwatering and keep foliage dry to avoid issues with mildew. The best carrot varieties for pots are Romeo, Tonda di Parigi, and Little Finger. 

For more on how to grow carrots in containers, click here


PEAS

Pretty much all varieties of peas are good for container gardening, but dwarf varieties and bush varieties are preferred, especially if you are limited on space for your vegetable garden. Peas enjoy moist soil and cool weather and containers that are six to 12 inches deep depending on the cultivar. If your container is at least one foot in diameter, you can fit four to six pea plants in it comfortably. The best peas for container gardening are Peas-in-a-Pot, Tom Thumb, Snowbird, and Little SnapPea Crunch

To learn more about growing peas, click here


EGGPLANT/GARDEN EGG

Eggplants are fairly large vegetables, but as long as you provide at least a five-gallon pot that is wide enough to provide plenty of room for each eggplant you grow, they will perform very well in pots on your balcony. Eggplants require six to eight hours of direct sunlight each day and regular fertilization. Eggplant plants require support when they start producing fruit, so make sure to remember to provide stakes or cages to help support the weight of the heavy eggplant fruits. The best varieties of eggplant for container gardening are Fairy Tale, Bambino, Crescent Moon, Hansel, and Gretel. 

To learn more about growing eggplants, click here.


TIPS FOR GROWING VEGETABLES IN POTS ON YOUR BALCONY


  • Do not use soil from the ground when growing in containers, as it is typically heavy and may cause drainage issues, and it may contain pests or soil-borne diseases that could hurt your crops. Instead, use potting soil, preferably potting soil that is specifically formulated for vegetables. A top of the line, organic potting soil is ideal, and feel free to mix in some well-rotted compost, or worm castings to increase the organic matter and improve water retention and drainage. 
  • Make sure that your balcony gets plenty of sunlight, as the majority of vegetables and herbs enjoy at least eight hours of sunlight per day. If your balcony or patio area doesn’t get that much sun, you will need to adjust what you are growing in that area. A handful of root vegetables, like carrots and radishes, as well as leafy greens like lettuce, chard, and kale, only need four to six hours of sunlight to thrive. Look for a spot on the porch, deck, or driveway area that does get eight hours of sun for your other vegetables and herbs that thrive in full sun conditions. 
  • Make sure that you have a water source nearby, as vegetables are very thirsty plants and they will need a lot of water during the growing season to develop plenty of fruit for harvests. Having a water source nearby will keep you from having to lug watering cans full of water for long distances to keep your plants hydrated. 
  • Take a look above the location where you are planning on keeping your containers for your vegetable garden and try to avoid placing them under the awning of your balcony or right up against the house. Making sure your plants have access to rainfall can cut a lot of work out of caring for your plants, as you won’t need to manually water them after a heavy rain, as long as they are in a position where they are receiving that rainfall whenever it comes along. 
  • Pick containers that are large enough to support the root systems of the plants that you are wanting to grow and large enough so that the plants have plenty of room to grow to full size without needing to be repotted. Make sure that the containers that you choose have ample drainage. Here is a quick guide to selecting the right size pots for the vegetables and herbs that you want to grow:

One to two gallon containers (for small plants) – Leafy greens like lettuce, kale, chard, collards, and spinach. Other plants that work for one to two gallon containers include grape and cherry tomatoes, kohlrabi, and individual herb plants.

Five to eight gallon containers (for medium plants) – Most brassicas fit into this size container, including broccoli, cauliflower, cabbage, and Brussels sprouts, as well as medium-sized tomato plants, okra, and bush-style cucumber plants. 

Eight to ten gallon containers (for large plants) – Most large vegetables will fit into these size containers, including peppers, eggplant, cucumbers, squash, zucchini, tomatillos, large tomatoes, and bush type winter squash varieties. 

Ten to fifteen gallon containers (for extra large plants) – These extra large containers will suffice for individual plants of extra large tomatoes, winter squash, pumpkins, and artichokes. 

  • Good companion plants for pairing up veggies in extra large containers or for growing near to each other in separate containers:
    • Plant beans with carrots and squash, or pair beans with eggplants. 
    • Plant tomatoes with basil, garlic, and onions. 
    • Pair lettuce with herb plants like basil, rosemary, and thyme. 
    • Plant spinach with chard and onions.
  • Avoid planting these plants near one another, even in separate containers:
    • Keep bean plants away from onion and garlic.
    • Keep carrots away from dill or fennel.
    • Don’t plant tomatoes near squash or potatoes.
    • Don’t plant onions near beans or peas.

Starting your own vegetable garden on your balcony or patio space is fun and easy. Growing vegetables in containers can be nearly as prolific as growing them directly in the ground, and container gardening can drastically reduce issues with pests and soil-borne diseases. If you have a balcony or patio with ample space and plenty of sunlight, there’s no reason why you shouldn’t start your own container garden today. 

Source: Gardening Channel

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EEDC TAKES MOBILE MAP METERING TO OWERRI, IMO STATE

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The Enugu Electricity Distribution Company PLC (EEDC) has commenced mobile MAP metering in Owerri, Imo State, as part the organization’s conscious effort to have more of its customers access prepaid meters within 48 hours.

This metering program allows customers to pay and get metered and reimbursed with the value of the cost of meter through energy over a period.

The Head, Corporate Communications, EEDC. Mr. Emeka Ezeh, who made this known through a press statement, affirmed that the company adopted this as a strategic approach to close the existing metering gap in its network.

Mobile MAP Metering kicked off in Enugu in June 2022, and has been executed in several locations within the metropolis. It has traversed Ogidi and Onitsha, in Anambra State, with about 6000 customers already metered through this program.

To subscribe, EEDC customers residing in Owerri are expected to visit either the Owerri or New Owerri District office with a valid form of identification (either Drivers License, Voters Card, NIN or International Passport) and a copy of their bills. Officials of the company will assist with the MAP application process, and installation will be made once payment is confirmed.

The Single-phase meter goes for N63,061.27 while the Three-phase meter is N117,910.69. The prices are all inclusive of VAT.

Customers are therefore encouraged to take advantage of this opportunity and get metered, bearing in mind that they will be reimbursed with the value of the cost of the meter through energy, over a period. It is also the only way they can manage their consumption and pay for what they consume.

This exercise is carried out by EEDC in conjunction with its MAPs (Meter Asset Providers) – MOJEC International Limited and Advanced Energy Management Services (AEMS).

MAP is a metering intervention designed and approved by the Nigerian Electricity Regulatory Commission (NERC) to close the existing metering gap in the sector.

EMEKA EZEH
HEAD, CORPORATE COMMUNICATIONS, EEDC
18/05/2023

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