How to Establish Breach of Duty of Care in Negligence against Electricity Distribution Companies and other regulatory agencies in the Power sector in Nigeria.

Introduction:

Breach of duty of care in negligence occurs when a duty of care exists and was not followed. Breach of duty of care is an important component in negligence cases and to establish breach of duty of care, the underlisted court cases as well as sections of the EPSR Act, 2005; NERC Regulations and Consumer Protection Council Act, have been considered with respect to the duties of electricity distribution companies (Discos), NERC and minister of power in the power sector in Nigeria.

Who are Electricity Distribution Companies?

Electricity distribution companies are responsible for the network of power lines, underground cables, substations and low-tension cables that get electricity to home or business in the area where you live. They can be in breach of duty of care to individuals and businesses by virtue and pursuant to the following provisions of these relevant sections of laws guiding the electricity and power industry:

1. Section 67 of the Electric Power Sector Reform Act, 2005 which states as follows:

“Subject to such terms and conditions as the Commission may fix in the licence, a distribution licence shall authorize the licensee to construct, operate and maintain a distribution system and facilities, including, but not limited to, the following;

The connection of customers for the purpose of receiving a supply of electricity; The installation, maintenance and reading of meters, billing and collection; and

Such other distribution services as may be prescribed for the purposes of this section.” 

1. Section 7 (3) (h) of the NERC reporting compliance regulations, 2009 which states as follows:

“Distribution licensee (h) Customer Complaints

“Distribution licensee shall submit to the Commission a monthly customer complaints report and a monthly customer register in accordance with the requirement on Schedule 4A and Schedule 4B to these regulations.”

1. Most times electricity distribution companies are in violation of NERC, Customer Service Standards of performance for Distribution Companies Regulations No. 40 2007 pursuant to section 32 (e) of the Electric Power Sector Reform Act, 2005 which states as follows:

“To ensure the safety, security, reliability and quality of service in the production and delivery of electricity to consumers.” 

Who is Nigerian Electricity Regulatory Commission (NERC)?

NERC is an independent regulatory body with authority for the regulation of the electric power industry in Nigeria. In some circumstance, this regulatory body can be held in breach of the following sections of the laws:

1. “Section 80 of the Electric Power Sector Act, 2005 which states as follows:

“The Commission shall develop in consultation with the licensees, the following materials –

Customer service standards; Customer complaint handling standards and procedures…etc”

1. Section 81 of the Electric Power Sector Act, 2005 which states as follows:

“The Commission shall develop, in consultation with the licensees and other interested parties, the following performance standards and codes –

Standards of overall performance in connection with the provision of electricity supply services and in connection with the promotion of the efficient use of electricity by consumers.”

Where an electricity consumer suffers damages or loss of property due to the negligence and breach of duty of care as a result of faulty electricity supply or installation, such an individual or company could seek legal redress in court against the electricity distribution company, Nigerian Electricity Regulatory Commission (NERC) and the Minister for Power by virtue and pursuant to section 9 and 12 (b) of the Consumer Protection Act CAP C25, Laws of the Federation of Nigeria, 2004 which states as follows:

Section 9 – Unforeseen hazard and duty to inform public:

(1)      “it shall be the duty of the manufacturer or distributor of a product, on becoming aware after such product has been placed on the market, of an unforeseen hazard arising from use of such product, to notify immediately the public of such risk or danger and cause to be withdrawn from market such product.”

Section 12 – Contravention of enactment protecting consumer:

“Any person who, in contravention of any enactment whatsoever for the protection of the consumer –

(b)     Provides any service or proffers any information or advertisement thereby causing injury or loss to a consumer,

is guilty of an offence under this Act and liable on conviction to a fine of N50, 000.00 or to imprisonment for a term of five years or to both such fine and imprisonment.”

The above statutory provisions exist in addition to the right of affected electricity consumers to institute civil suits for compensation and restitution, which the Consumer Protection Council guarantees. Furthermore, section 8 of the Consumer Protection Council Act, CAP C25, LFN, 2004 states as follows:

“Whereupon an investigation by the Council or State Committee of a complaint by a consumer it is provided that –

A consumer’s right has been violated; or

That a wrong has been committed by way of trade, provision of services, supply of information or advertisement, thereby causing injury or loss to the consumer, the consumer shall, in addition to the redress which the State Committee, subject to the approval of the Council, may impose, have a right of civil action for compensation or restitution in any competent court.” 

Who qualifies as a consumer of electricity?

The courts have held in Amadi v. Essien (1994) 7 NWLR (Pt.354) 91 that for a person to qualify as a consumer of NEPA (electricity distribution companies), he needs not to be a registered consumer of the National Electric Power Authority. Thus, the court held as follows:

“To entitle a person to invoke judicial power, he must show that either his personal interest will immediately be or has been adversely affected by the action or that he has sustained or is in immediately danger of sustaining an injury to himself” 

It is not in every case whether there is no direct contractual relationship between the consumer and electricity distribution company that an action cannot be founded. The relationship may not be contractual in nature, but the law will be correct to read into the relationship of the parties an implied undertaking on the part of the electricity distribution company not to injure the consumer.

Sufficient interest to ground locus to the consumer to sue is an interest which is peculiar to the consumer, an interest which he does not necessarily share with the members of the public. The interest in the subject matter must be over and above what the ordinary members of the society have. The interest must be unique and proprietary. See also the case of Center for Oil Pollution Watch v. NNPC (2019) 5 NWLR (Pt. 1666) 518.

However, section 100 (1) (10) of the Electric Power Sector Reform Act, states that:

“Consumer” means any end-user of electricity who is a customer of a distribution licensee that is not an eligible customer and, for the purposes of filing a complaint with the Commission and for any other reason that the Commission may determine, a person who is temporally disconnected or otherwise without service, provided that a person who has applied for, but had yet to receive, service shall also be deemed to be a consumer”. 

However, the word “customer” and “consumers” are used interchangeably though accorded different meanings under the EPSR Act and Regulations. For instance, the NERC, Regulation 2 (8) on Customer Complaints Handling: Standards and Procedure 2006, defines a CUSTOMER as:

“Any person or organization supplied with electricity for his own use by a distribution licensee or by any other person engaged in the business of supplying electricity to the public under the Electric Power Sector Reform Act or any other law for the time being in force and includes any person whose premises are for the time being connected for the purpose of receiving electricity from a distribution licensee or such other person as the case may be”. 

The above cited section of the law seeks to protect electricity consumers from defects in electricity services by licensees and other electricity trading companies. Though the Act does not define what constitutes ‘a defect’ in the electric power sector, however, the definitional gaps have been filled by the NERC, Regulation 2 (1) on Customer Complaints Handling: Standards and Procedure 2006 which defines “defect” for the purpose of Consumer Protection as:

“a fault, imperfection or shortcoming in the quality, standards of service, equipment or material which is required to be by or under any law or regulation for the time being in force or under any contract or as claimed by the customer in relation to electricity service”. 

The regulation under section 2 (12) also defines deficiency in relation to the Electric Power Sector as:

“Any fault, imperfection, shortcomings or inadequacy in the quality of service which is required to be maintained by or under any law or regulation or has been undertaken to be performed by a distribution licensee in pursuance of a contract agreement or otherwise in relation to electricity service or performance standards, viz; interruptions, failure of power supply, voltage complaints, metering problems of power supply to the customer in contravention of the EPSR Act, 2005.” 

What causes electric spark on electricity cables?

Having established, the customer relationship between consumer and electricity distribution company, our next issue is to highlight the possible causes of electric cable spark that is capable of cutting a high-tension or low-tension wire.

Sparking cables, loose connections and snapping wires have been identified as some of the major causes of damages or injuries to customers of electricity distribution companies. To curb such incidents from occurring, electricity distribution companies always provided 24/7 customer care lines to report faulty cable and sparking light from their installations, but unfortunately, there is always slow pace in response or feedback from the electricity distribution companies.

It is also not in doubt that the electricity distribution companies usually experience bureaucratic bottlenecks in getting the necessary approvals or materials from their high ranks to salvage situation or fix repairs which might lead to injuries or damages to customer.

The causes of electric spark are:

1. Deterioration of component due to elongated period of spark:

Electricity is generated at various power stations and then sent through transmission lines which provide electric power to homes and businesses. The flow of electricity and electrical current is supplied through electrical wiring which begins the path that allows the flow of electrical power through each circuit. The flow of electricity is referred to as “LOAD” which describes the amount of electricity that is flowing through the circuit. This amount of electricity can be measured in watts and amperes also known as amps.

A spark occurs when power is turned on or off. When a device or equipment is connected to an electrical circuit and is in the ON position, there is an electrical load that is being produced which causes the flow of electricity. When the flow is started or stopped, it can produce a spark of electricity between the two components which provide the connection of electricity.

Common components that provide electricity where a spark may be produced are circuit breakers, switches, outlet and cord plugs or any two components which complete the circuit and provide the flow of electricity.

An electric spark which can over time, cause deterioration between the points of contact, which can then produce a failure of connection which was necessitated by the inefficiency of the electricity distribution company to replace the bad receptacle outlet where the contacts wear out due to this electrical spark, which is also known as arcing.

It is important to note that the higher the electrical load, the bigger the spark and faster the deterioration of the joint of the two components. For instance, the size of an electrical spark that is produced when a device or equipment is turned on or off will depend on the amount of electricity that will be required by the device or equipment. Thus, a switch that turns on a light fixture with a standard 60watt light bulb will produce a smaller spark than 11KV electric cable and the resultant effect will ultimately be fatal on any person or appliance it comes in contact with.

1. Old outlets and electrical components:

Furthermore, old electrical outlets pose serious problems to smooth distribution of power by electricity distribution companies. Some of these electricity poles, aluminum conductors/cable and installations must have been around for over 30 years and as a general rule, electrical outlets gradually wear out over time. As the years pass, the connections will gradually loosen, increasing the chances that a short circuit will occur and start a fire or give off a spark. Thus, the electric cables and installations which some of the electricity distribution companies are currently making use of are obviously old, worn out and pose serious hazards which is susceptible to causing injuries and damages to consumers.

Under section 32 (2) (b) (c) and (d) of the Electric Power Sector Reform Act, NERC is empowered to undertake the following objects and functions –

For the furtherance of the objects referred to in subsection (1) of this section, the Commission shall perform the following functions –

“(b)   Establish or, as the case may be, approve appropriate operating codes and safety, security, reliability and quality standards;

(c)      Establish appropriate consumer rights and obligations regarding the provision and use of electric services;

(d)     Licence and regulate persons engaged in the generation, transmission, system operation, distribution and trading of electricity.”

Other penalties that electricity distribution companies may face as a result of breach of duty of care and negligence would be where the Minister of Power pursuant to section 26 (3) (c) (i) (ii) (iii) and (d) of the EPSR, Act may issue direction to terminate, suspend or restrict electricity distribution company’s right to participate in the electricity and ancillary services within the power distribution sector for breach of duty care and non-compliance with the NERC regulations and the extant provisions of the Act. NERC may also be penalized by the minister of power for breach of monitoring the activities of electricity distribution companies and as empowered by its establishing Act.

How to establish breach of duty of care in negligence?

Negligence is any conduct that falls below the standard established to protect others against unreasonable risk of harm and to establish liability for breach of duty in negligence and placing reliance on the cases of Donoghue v. Stevenson [1932] A.C. 562 at 577 and Merchantile Bank v. Abusomwan (1986) 2 NWLR (Part 22), a plaintiff must prove:

1. The defendant owed a duty of care to the plaintiff.
2. The defendant breached that duty.
3. The breach caused harm to the plaintiff.
4. The plaintiff suffered an injury/damage.

The above principles highlight the standard of what a “reasonable person” would have done in the circumstances of the case in order to decide whether a person has broken his/her duty of care in the tort of negligence.

Finally, in situations where the electricity distribution companies or NERC are investigated and found to be in breach of duty of care or negligent in the discharge of their obligations to consumers pursuant to sections 32 (e) and 67 (b) of the EPSR, Act, 2005 which was expressly couched to ensure the safety, security, reliability and quality of service in the production and delivery of electricity to consumers, they will be liable to pay damages commensurable to the quantum of loss that the consumer have suffered where there is sufficient proof of evidence to back up such losses.

For further legal assistance on topical legal issues, do not hesitate to contact the author:

Kingsley Izimah, Esq.

Principal Partner,

SK Solicitors

0806-809-5282

www.sk-solictorsng.com

sksolicitors.ng@gmail.com or

info@sk-solicitorsng.com

The Central Bank of Nigeria (CBN) released the new 2023 Customer Due Diligence (CDD)  guidelines in furtherance of its more enhanced regulatory framework and to ensure stricter compliance. 

This article will be focused on the notable provisions of these guidelines including :-

– Their Objectives and Application.

– Core CDD provisions

What are the objectives of the CDD 2023 Guidelines?

The objectives of these guidelines are to —

(a) provide additional customer due diligence measures for financial institutions (FI) under the regulatory purview of the CBN to further their compliance with relevant provisions of the Money Laundering (Prevention and Prohibition) Act (MLPPA), 2022, Terrorism(Prevention and Prohibition) Act (TPPA), 2022, Central Bank of Nigeria(Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations, 2022 (CBN AML, CFT and CPF Regulations) and international best practices.

(b) enable the CBN enforce compliance with customer due diligencemeasures in line with the CBN AML, CFT and CPF Re-gulations.

(c). complement the relevant provisions of the CBN AML, CFT and CPF Regulations on customer due diligence measures and additional customer due diligence measures for specific customers and activities.

What is the applicability scope of these guidelines?

These guidelines shall be read in conjunction with the CBN AML, CFT and CPF Regulations and will also be applicable to all Financial Institutions (FIs) under the regulatory purview of the Central Bank of Nigeria.

What are the most notable CDD provisions of these guidelines?

They are as follows :-

– FIs shall not establish or keep anonymous accounts, numbered accounts or accounts in fictitious names

– FIs shall undertake CDD measures when: 

(a) establishing business relationships;

(b) carrying out occasional transactions above the applicable and designated threshold of US$1,000 or its equivalent in other currencies or as may be determined by the CBN from time to time, including where the transaction is carried out in a single or several transactions or operations that appear to be linked ;

(c) carrying out occasional transactions that are wire transfers, including cross-border and domestic transfers between FIs and when credit or debit cards are used as a payment method to effect money transfer ;

(d) there are doubts as to the veracity or adequacy of previously obtained customer identification data ; 

(e) there is a suspicion of ML, TF and PF regardless of any exemptions or any other thresholds referred to in these Regulations or the CBN AML,CFT and CPF Regulations.

–  FIs shall establish internal processes and procedures for conducting CDD measures for all potential and existing customers, including occasional customers.

-CDD measures shall include —

(a) customer identification and verification of identity ;

(b) identification and verification of identity of beneficial owners (BOs) ;

(c) understanding nature and purpose of business ;

(d) understanding the sources of funds ; 

(e) conducting ongoing due diligence on the business relationship and monitoring for suspicious activities.

– FIs shall identify their customer (whether permanent or occasional, and whether natural or legal persons or legal arrangements) and obtain the following information —

(a) for individuals —

(i) legal name and any other names used (such as maiden name),

(ii) permanent address (full physical address),

(iii) residential address (where the customer can be located),

(iv) telephone number, e-mail address and social media handle,

(v) date and place of birth,

(vi) Bank Verification Number (BVN),

(vii) Tax Identification Number (TIN),

(viii) nationality,

(ix) occupation, public position held and name of employer,

(x) an official personal identification number or other unique identifier contained in an unexpired document issued by a government agency,that bears a name, photograph and signature of the customer such as a passport, national identification card, residence permit, social security records or drivers’ license,

(xi) type of account and nature of the banking relationship,

(xii) signature, 

(xiii) politically exposed persons (PEPs) status .

(b) for legal persons and legal arrangements —

(i) name of institution,

(ii) mailing address,

(iii) e-mail and social media address,

(iv) phone numbers,

(v) registration number,

(vi) registered address,

(vii) business address,

(viii) valid identification, such as tax identification number,

(ix) nature and purpose of business or activities,

(x) certified true copy of docu-mentary evidence confirming legalexistence such as certificate of incorporation,

(xi) certified true copy of memorandum and articles of association or other similar documents,

(xii) certified true copy of the list of directors and shareholders or similar documents,

(xiii) board resolution to open the account,

(xiv) identification of those who have authority to operate the account,

(xv) legal documents indicating persons exercising control or significant influence over the legal persons and legal arrangement’s assets,

(xvi) valid means of identification of persons mentioned in sub-paragraph (xv) of this paragraph,

(xvii) names and identification documents of the relevant persons having a senior management position in the legal persons and legal arrangements,

(xviii) the original documents referred to in subparagraphs (x) to

(xiv) of this paragraph, shall be sighted and documented.

-FIs shall verify the identity of customers and BOs using reliable, independent source documents, data or information (identification data). 

FIs shall verify the identity of individuals by confirming the —

(a) date of birth from a valid official document, such as birth certificate, passport, identity card and national or social security records.

(b) residential address through physical visitation and use of other sources, including utility bill, tax assessment, bank statement, or letter from a public authority ;

(c) contact details provided by the customer through positive feedback from phone call, email or physical letter to the residential address ;

(d) validity of the official documentation provided through certification by an authorized person such as embassy official, notary public (in the caseof foreign nationals) ; 

(e) phone numbers, particularly for wallet providers, through independent process, including validation against the NCC database or geo-mapping.

– FIs shall verify the identity of a legal person or legal arrangement by —

(a) undertaking search on public registries or databases such as CAC or similar database, other commercial enquiries and through any other available sources of information to confirm —

(i) the existence of the legal person or legal arrangement,

(ii) whether the legal person or legal arrangement has not been, or is not in the process of being diss-olved, struck off, wound up or terminated,

(iii) the information on the directors and shareholders or persons or entities holding similar positions, including their PEP status, 

(iv) information on person with significant control, 

(v) information on BO, and its PEP status,

(b) reviewing a copy of the latest annual report, audited accounts or relevant financial statement, where applicable ;

(c) reviewing a copy of the board resolution or applicable resolution ; 

(d) utilizing the documentation from a reliable independent source proving the name, form and current existence of the customer ;

(e) utilizing an independent information verification process, such as accessing public and private databases ;

(f ) obtaining prior bank references, where applicable ;

(g) visiting the entity,

(h) confirming the contact details provided through phone call, email and physical letter to the business address.

-When conducting CDD measures in relation to customers that are legal persons or legal arrangements, FIs shall —

(a) understand the ownership and control structure ;

(b) at the time of establishing new relationships or whenever there is a change in ownership, identify and verify the identity of the BOs who exercise control through ownership or controlling interest, including voting rights ;

(c) subject all account signatories, Directors and BOs to the requirements for identification and verification of individuals provided in regulations 6 and 7 of these Regulations ; 

– FIs shall verify —

(a) that any person purporting to act on behalf of a customer is so authorized ;

(b) the identity of the person purporting to act on behalf of a customer. 

– The verification referred to in the preceding sub-regulation shall be done through confirmation from the customer the third party is purporting to represent and from other independent sources.

–  FIs shall understand and obtain sufficient information on the nature and purpose of the business that its customer intends to undertake, including expected or predictable patterns of transactions. FIs shall be at alert to circumstances that may indicate any significant changes in the nature of a business or its ownership.

– FIs shall understand and obtain sufficient information on the source of funds into the customer’s account.

The information to be obtained before the commencement of the relationship shall include— 

(a) details of occupation,empl-oyment or business activities and sources of wealth and income ; 

(b) expected origin of the funds to be used in the operation of the account during the relationship.

– FIs shall conduct ongoing due diligence on a business relationship and scrutinize transactions under-taken throughout the course of the relationship to ensure that the transactions being conducted are consistent with the —

(a) FI’s knowledge of the customer ;

(b) customer’s business and risk profile ; 

(c) source of funds.

FIs shall take reasonable steps to keep the information up-to-date, and as the need arises, including where an existing customer opens a new account.

– FIs shall apply CDD requirements to existing customers on the basis of materiality and risk and continue to conduct due diligence on such existing relationship at appropriate times.

The appropriate time to conduct CDD for existing customers include, but not limited to when —

(a) transaction of significant value or an unusual transaction occurs ;

(b) there is significant change in the customer’s profile ;

(c) there is a material change in the way that the account is operated ; 

(d) the FIs become aware that it lacks sufficient information about an existing customer.

– FIs shall adhere to e-KYC requirements as stipulated in the CBN Guidelines on e-KYC and the CDD measures stipulated in these Regulations(where applicable) as it relates to digital products, and cust-omer onboarding.

– FIs shall conduct initial risk assessment for each prospective customer to ascertain the customer’s risk profile.

The application of CDD measures may be standard, simplified or enhanced depending on the risks posed by each customer, transaction, products or service resulting from a customer risk assessment.

For low risks customers —

(a) FIs may adopt simplified CDD measures only where lower risks have been identified through an adequate assessment and analysis of the risks, and the simplified CDD measures shall be forwarded to the CBN for approval before implementation by the FI ;

(b) notwithstanding the application of simplified CDD on customer identification and verification, the customer is not exempt from ongoing monitoring for other CDD measures ; 

(c) the simplified measures shall be commensurate with the lower risk factors but are not acceptable whenever there is suspicion of ML, TF or PF, or where specific higher risk scenarios apply.

For high risks customers — 

(a) arising from an initial assessment of a customer, particular attention shall be focused on those customers identified as having a higher risk profile ; 

(b) customers with higher risk profile include, but not limited to, nonresident customers, MVTS providers, private banking customers, non-face-to-face customers, and PEPs. 

 —FIs shall comply with Tiered KYC measures as stipulated in the CBN circulars on TKYC and the CBN AML, CFT and CPF Regulations.

Tiered KYC shall apply to individuals only and shall not apply to legal persons and legal arrangements.

-FIs shall perform enhanced CDD for customers, business relationship or transactions with higher ML, TF, and PF risks.

The enhanced CDD shall include, but not limited to :

(a) obtaining additional information on the customer including occupation, volume of assets, information available through public databases, internet, and updating more regularly the identification data of the customer and BO ;

(b) obtaining additional information on the intended nature of the business relationship ;

(c) obtaining information on the source of funds and source of wealth of the customer ;

(d) obtaining information on the reasons for intended or performed transactions;

(e) obtaining the approval of senior management to commence or continue the business relationship ;

(f ) conducting enhanced monitoring of the business relationship, by increasing the number and timing of controls applied, and selecting patterns of transactions that need further examination ; 

(g) requiring the first payment to be carried out through an account in the customer’s name with a bank subject to similar CDD standards.

– FIs may rely on the identification and verification steps that it had previously undertaken, unless it has doubts about the veracity of that information or where there is a material change in the circumstances or profile of the customer. 

The situations that may lead a FI to have doubts about the veracity of an information include where there is a —

(a) suspicion of ML, TF or PF in relation to that customer ; 

(b) material change in the way that the customer’s account is operated, which is not consistent with the customer’s business profile.

– A FI that is unable to comply with the CDD measures pursuant to these Regulations shall—

(a) not be permitted to open the account, commence business relations or perform the transaction with the concerned persons ; 

(b) be required to render a Suspicious Transaction Report (STR) to the Nigerian Financial Intelligence Unit (NFIU).

-In addition to the provisions of regulation 27 of the CBN AML, CFT and CPF Regulations where a FI relies on other FIs and DNFBPs to conduct its CDD, it shall —

(a) immediately obtain the necessary information concerning the identification and verification of the customer and BO and the purpose and intended nature of the business relationship ; 

(b) take adequate steps to satisfy itself that copies of identification data and other relevant docu-mentation relating to the CDD requirements is going to be made available from the third party upon request without delay ;

(c) satisfy itself that the third party is regulated, supervised or monitored for, and has measures in place for compliance with, the CDD and record keeping requirements set out in these Regulations and the CBN AML, CFT and CPF Regulations ; 

(d) ensure that adequate KYC provisions are applied to the third party in order to obtain account information for competent authorities.

Notwithstanding the conditions specified in sub-regulation (1) (a) to 

(d) of this regulation, the ultimate responsibility for customer identification and verification shall be with the FI relying on the third party.

–  FIs shall obtain and verify the identity of the customer, beneficial owner and occasional customers before or during the course of establishing a business relationship or conducting transactions for them.

FIs are permitted to complete the verification of the identity of the customer and BO following the establishment of the business based on criteria set out in regulation 22 of the CBN AML, CFT and CPF Regulations.

Where a FI suspects that a transaction relates to ML, TF or PF and it believes that performing the CDD process may tip-off the customer,it shall:

(a) not pursue the CDD process ;

(b) file an STR to the NFIU, immediately.

FIs shall ensure that their employees are aware of, and sensitive to, the issues referred to in subregulation (1) of this regulation when conducting CDD.

– In addition to the provisions of regulation 35 of the CBN AML, CFT and CPF Regulations, FIs shall :

(a) keep all records obtained through CDD measures, account files and business correspondence, and results of any analysis undertaken, either in electronic or written form for at least five years following the termination or cessation of the business relationship or after the date of the occasional transaction ;  

(b) ensure that documents, data or information collected under the CDD process is kept up-to-date and relevant, by undertaking reviews of existing records of customers as stipulated below or whenever the need arises:

(i) for high risk customers, every 12months, 

(ii) for medium risk customers, every 18months, and

(iii) for low risk customers, every 3years.

 

This piece concludes here

There recently have been internal issues amongst the Nigeria armed forces since the president made the recent appointment, appointing new leadership.

The president in his wisdom bypassed most senior ranks and appointed leaders from ranks below their seniors and by military tradition as I was made to understand, when a junior rank is appointed over the seniors, all the seniors are expected to voluntarily retire since the seniors cannot take orders from the junior.

Well, most of the senior officers who are expected to voluntarily retire have refused to retire; the Nigerian army even made a publication insisting that Monday, the 3rd of July 2023  is the last day every affected senior officer is to submit his voluntary letter of resignation.

This got me thinking of why a senior respected officer up to the rank of General in the army will wait to be embarrassed or dragged out publicly before he would voluntarily retire as expected. I am privileged to have a senior friend who is a retired major general in the Nigerian army and I had this conversation with him over the weekend. I asked him, why will senior officers refuse to voluntarily retire as expected and be waiting to be embarrassed out of office?.

I told him that I am guessing that maybe it was because of money, the senior officers could be waiting to get more monetary benefits before they exit the office. He quickly corrected that impression that I had by telling me that their refusal to voluntarily retire is never because of money and that the application to retire voluntarily triggers the whole process of the collection of monetary benefits. He said that It’s just the “naija” in us and greed that makes some senior officers want to remain in their seats even when they are expected to voluntarily retire.

He also told me that issues like these of senior officers refusing to voluntarily retire are not that bad amongst the armed forces; in his words; “It is really not as bad in the Armed Forces as it is almost impossible to refuse posting or retirement.  Many effective checks against such are in place if reported. This includes denial of access to the facility or office. Paraphernalia of office will be taken away, arrest and prosecution by court-martial etc. In fact You’ll discover that before all these your subordinates will no longer take instructions from you for the fear of mutiny and its consequences is the beginning of wisdom”.

I also asked him if this is how it’s done in other parts of the world, that the president can appoint juniors to head the military bypassing the seniors that are still in active service because it is expected that the president in appointing heads of the military should appoint from the most senior ranks  to avoid issues like this; he responded thus;

“Well, the C-in-C in his wisdom has the right to appoint whosoever he wants as the head of the Nation’s military. However, his decision is subject to guidelines as stipulated in the books. This is in line with best practices. However,  because of the complexity of our country, issues like ethnicity, religious and political considerations and quota system etc have cropped into the selection process. In other climes, only merit, seniority, strategic national interest, performance and to an extent politics among others play a vital role”.

I wish the newly appointed service Chiefs well and I hope that Nigeria will experience peace and security under their leadership. I also wish affected senior officers a happy voluntary retirement.