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INEC Contemplates Moving Materials from CBN, Laments Double Registration by Voters

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Election cycle

The Independent National Electoral Commission (INEC) has disclosed that it may consider moving sensitive electoral materials away from the Central Bank of Nigeria (CBN), where they are statutorily kept for safety.

The Commission’s Chairman, Prof Mahmood Yakubu made this known on Thursday, 12th May 2022 while fielding questions from newsmen at a Consultative meeting with media outfits in Abuja, the nation’s capital territory.

His comment was tied to the question on the partisanship of the incumbent CBN Governor, Godwin Emefiele who is reportedly eyeing the presidential seat.

While the CBN Governor has not officially declared his intention to run for the topmost seat in the country, there have been campaigns and branded vehicles from faceless groups, urging him to contest. His body language thus far also suggests he is interested in the race.

In the rush for the position under the ruling All Progressives Congress (APC), Farmers’ Association of Nigeria purportedly paid a whopping sum of N100 million to obtain the expression of interest forms and nomination forms for Mr Emefiele.

He had also filed a suit seeking to secure his right to run for the presidency in 2023, without resigning from his current position.

In response to newsmen’s question on the CBN Governor’s partisanship activity in recent times, Prof Yakubu stated that the INEC had started talking on alternative places to store its sensitive materials.

“I understand the context in which the question is asked. But you should also understand the context in which events are unfolding.

“As we speak, our Director, Litigation and Prosecution is in court. There is a case in court. We have been invited to state our own side of the story. We usually refrain from talking about such issues because there is essentially subjudice.

“But we have already started talking about what alternatives are available to us in case we need to change the arrangement for the handling of sensitive materials.” the INEC boss replied.

Prof Yakubu equally vowed not to tolerate any form of jeopardy to the conduct of the election by creating a misconception around the situation in the process.

It’s noteworthy that Mr Emefiele has continued to shun President Muhammadu Buhari’s call for the resignation of all appointees vying for political offices in the impending general elections come 2023.

He met with the president on Thursday, 12th May 2022 at Aso Rock. After the visit, the CBN Governor, who appeared not to be bothered about calls for his resignation, bluntly told newsmen that he was “having fun” with the whole melodrama.

He said, “I am having fun at the scenario. Let them have heart attack. It’s good to have heart attack. I am having a lot of fun.”

Since President Buhari has refused to sack Mr Emefiele in spite of the numerous calls by various Nigerians, both home and abroad, it’s very clear and understandable that the CBN is no longer safe to keep the sensitive electoral materials.

In view of this fact, the INEC needn’t be notified or reminded that it’s compelling for the commission to seek alternative venues. Hence, the expected arrangement regarding the required action ought to be made in earnest. Think about it!

INEC Lamentation Over Voters’ Double Registration, Sundry Issues

Ahead of Nigeria’s 2023 general elections, the Independent National Electoral Commission (INEC) is currently worried over multiple registrations of voters across the country.

The Head of Voter Education and Publicity in Yobe State, Rifkatu Duku, in an exclusive interview with newsmen on the update of voters’ registration in Yobe State, disclosed that one of the biggest challenges the commission was faced with had been voters engaging in multiple registrations.

She said the commission is not embarking on new registration and therefore did not encourage people who already had voter cards to register again.

According to the Yobe State spokesperson, such an action would amount to double registration and could lead to the disenfranchisement of those involved in the uncalled act.

Mrs Duku, who could not immediately disclose the exact number of unclaimed Permanent Voters Cards (PVCs) within their jurisdiction,  equally frowned over the situation where many PVCs were yet to be collected by the owners. She said, “a huge number of cards are yet to be collected.

“This is another big problem for us to handle alone. We are going to engage the media and civil society organizations to sensitize the people on the need to claim their cards.” She, therefore, stated that the commission was working hard to curb voters’ apathy.

“INEC usually does their budget based on the projection of voters. In Yobe State for instance, in the last election, we had about 1.3 million voters and that is the figure we have to consider first for the projection of our materials.

“Now in the event where such projection is based on voter’s cards or the number of registered voters, which is always the case, you can imagine the loss the commission will incur if the cards are not collected.” Mrs Duku said.

She further added that the commission would be closing her portal for registration for new members on 30th June this year, while calling on people to make the best use of the remaining time.

Nigerians shouldn’t be informed on the need to ensure they aren’t disenfranchised during the forthcoming general elections. I wonder why they could be clamouring for positive change or transformation in the country, yet not willing to cast their votes at the polls.

For crying out loud, any sane and discerning mind within the shores of Nigeria isn’t meant to be reminded of this lawful task required of him or her as we vigorously await the national ritual.

SEC Unveils Regulatory Guidelines for Offering and Custody of Digital Assets in Nigeria

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The Nigerian Security and Exchange Commission (SEC), has issued new guidelines (pdf) on issuance of digital assets in Nigeria, amid growing call for regulation as Nigerians increasingly embrace digital markets.

The SEC outlined five-part rules that covers many areas of the digital market. There are as follows: 1. PART A – Rules on Issuance of Digital Assets as Securities 2. PART B – Rules on Registration Requirements for Digital Assets Offering Platforms (DAOPs) 3. PART C – Rules on Registration Requirements for Digital Asset Custodians (DACs) 4. PART D- Rules on Virtual Assets Service Providers (VASPs) 5. PART E- Rules on Digital Assets Exchange (DAX).

The stock market regulator said the first rule is applicable to all issuers seeking to raise capital through digital asset offerings, including digital token and Initial Coin Offering (ICO).

“Except in cases of follow-on offerings, all promoters, entities or businesses proposing to conduct initial digital asset offerings within Nigeria or targeting Nigerians, shall submit the assessment form and the draft white paper,” the rules say.

The SEC said the white paper must contain all necessary information that will include Brief description of the initial digital asset offering, the distributed ledger technology, value of each token, lock-up period (if any), returns, profits, bonuses, rights and/or other privileges (monetary and non-monetary) to the buyer of the token. A technical description of the protocol, platform or application of the digital token, as the case may be, the associated benefits of the technology, risks in investing in the tokens among others.

”In the case of whitepapers of initial digital asset offering projects, pending assessment by the Commission, a disclaimer that the whitepaper does not represent an offer to sell, and a statement in bold letters that ‘THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED THESE TOKENS OR DETERMINED IF THE TOKENS ARE SECURITIES AND THUS, SHALL BE REGISTERED, OR THAT THE CONTENT OF THE WHITEPAPER ARE ACCURATE AND COMPLETE. ANY FALSE OR MISLEADING REPRESENTATION IS A CRIMINAL OFFENCE AND SHOULD BE REPORTED IMMEDIATELY TO THE SECURITIES AND EXCHANGE COMMISSION,” the rules say.

The Commission added that it shall, after it receives a complete initial assessment filing, review same within 30 days from receipt to determine whether the digital asset proposed to be offered, constitutes a “security” under the Investment and Securities Act 2007. The determination of the Commission shall be communicated in writing to the issuer within 5 days from the conclusion of the review.

Other key aspects of the digital business covered by the new rules include the registration requirements and the cost of applications. For instance, an applicant seeking to register a Digital Assets Offering Platform (DAOP) is required to pay N100,000 application fee, N300,000 processing fee, N30 million registration fee and N100,000 sponsored individual fee.

Other requirements include, minimum paid-up capital and fidelity bond – N500 million and current Fidelity Bond covering at least 25% of the minimum paid-up capital as stipulated by the Commission’s rules and regulations.

On Digital Assets Exchange (DAX), an applicant seeking to register as a DAX Operator is required to pay N100,000 as Filing/Application Fee – N300,000 Processing Fee, N30 million registration fee and N100,000 as sponsored individuals fee.

The rules also stipulated the period of a tenure and education qualifications for principal officers of a DAOP. The Chief Executive Officer of a DAOP is required to hold office for a period of five (5) years in the first instance and may be re-appointed for a further period of five (5) years and no more.

“The appointment of a Chief Executive Officer and Principal Officers of a DAOP shall be subject to the prior approval of the Commission. The Chief Executive Officer and other Principal Officers of a DAOP shall be registered by the Commission as Sponsored Individuals be persons of proven integrity with no record of criminal conviction; hold at least a university degree or its equivalent; have at least five (5) years cognate experience,”

And a principal officer should “not have been found complicit in the operation of an institution that has failed or been declared bankrupt or has had its operating license revoked as a result of mismanagement or corporate governance abuses; not have been found liable for financial impropriety or any other misdemeanor by any court, panel, regulatory agency or any professional body or previous employer; comply with any other criteria which the Commission may, in the public interest, determine from time to time,” the rules say.

While the regulation has long been advocated and expected, concern remains that it may not provide a lasting solution to the current situation of Nigeria’s digital market. The concern is based on whether the Central Bank of Nigeria will accept the new rules.

The SEC was caught off guard last year when the CBN issued the directive prohibiting all regulated financial institutions from making crypto transactions. The Commission had backed the burgeoning market and was working on its Capital Market FinTech Strategy before the CBN’s order.

Though the regulatory bodies agreed in the wake of the controversy to work together to develop a framework for Nigeria’s digital market, the CBN’s hostility toward cryptocurrency has not changed as the apex bank strongly believes the digital asset undermines the naira. Banks are still mandated to freeze accounts carrying out crypto transactions and many fintechs offering crypto services have been targeted and shut down.

It is not clear if these new rules by the SEC will change the status quo even though it is believed to have been developed in collaboration with the CBN.

My Response on SEC Nigeria New Regulations on Cryptocurrency, NFT and Digital Assets

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I have received many questions on the new Securities and Exchange Commission (SEC) Nigeria regulations which are designed to govern cryptocurrency, NFT and other digital assets in the nation. 

First, I commend the SEC for at least starting a conversation on regulating this fledgling sector. As I noted yesterday, only the government will save Bitcoin from itself. Yes, while some can trade and hodle $200, for the real players with $billions to come along, you need an order which only the government can offer. With what SEC has published, there is a small clarity now for innovators to navigate in Nigeria; that is better than an outright ban.

Secondly, I will also ask the SEC to work on an Act with the National Assembly to make it evident that crypto assets are clearly protected by current law. Decades ago, emails were not admissible in some courts, voiding contracts executed via emails. That loophole has been fixed with updated laws. Crypto assets must be clearly unambiguous and I do think we may need small regulations to bring that up to speed. The SEC needs to check this and ratify where necessary.

Thirdly, the $1 million paid-up capital requirement is too high: “Other requirements include, minimum paid-up capital and fidelity bond – N500 million and current Fidelity Bond covering at least 25% of the minimum paid-up capital as stipulated by the Commission’s rules and regulations.” With this amount, only well funded startups will run the show. It is going to be near  impossible for any local player to meet this requirement. The SEC would have divided this into foreign and local classes, just as we do in banking licenses, with the foreign ones required to have $1 million while local startups can go for $200,000 paid-up capital.

Finally, you can still comply with all these requirements as set up by SEC, and banks will still refuse to open bank accounts for you, because the Central Bank of Nigeria (CBN) has a standing instruction to wean the banking sector of anything cryptocurrency. Until CBN has set aside that instruction, these regulations do not help that much. The SEC must work with CBN to reverse itself since no one can confidently begin work to seek compliance when you are not sure any bank can serve you.

You can download the regulations here.

SEC Unveils Regulatory Guidelines for Offering and Custody of Digital Assets in Nigeria

OSUN 2022: PAN Urges Political Parties, Supporters to Refrain from Personality Attacks in Campaigns

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Sample of political parties in Nigeria (Source: Punch)

A research-based non-governmental organisation, Positive Agenda Nigeria (PAN) has admonished political parties in Osun State and their supporters to refrain from attacking the personalities of their opponents ahead of the July Governorship Election in the state.

The non-partisan organisation stated this in its first weekly report recently released to the public. According to the report, the major political parties in the state, the APC and the PDP, their supporters and media teams were found attacking the personalities of their political opponents instead of focusing more attention on campaign issues that could woo the electorate.

“Both the PDP and the APC attacked each other in terms of personalities of their candidates alongside their capabilities to rule the state, although the PDP engaged in such attacks than the APC. Nonetheless, in a contest like this, concerned observers and citizens of the state would have expected that the political parties, their members/supporters and media team sell the manifestoes of their flagbearers to potential electorate, especially opposition parties that intend slugging it out with the incumbent governor in July, 2022.

With the current findings, the political parties, their members/supporters and media team are not yet addressing “real campaign issues” every informed electorate in Osun State will want to hear on why they should vote for a particular candidate. We strongly recommend that the political parties, their supporters and media teams start engaging electorate on the social media on real campaign issues/policy programmes instead of demarketing the personalities of their political opponents”, the report concludes.

In an interview with the organisation’s Team Lead, Dr Adebiyi Rasheed Ademola of Fountain University’s Department of Mass Communication in Osogbo, it was revealed that the organisation will monitor and analyse the actors’ campaign efforts for 69 days. Using diverse research methodologies, he notes that members of the team will fiercely pursue answers to informed policy engagement or extensive personality disparagement in the Osun 2022 governorship election campaign. “We posed this issue in light of the political parties’ recent pledges, particularly the two main parties in the state, that they would be respectable in their campaign activities,” Dr Adebiyi explained.

The full report is available for download here

Buhari Meets With Cabinet Members Seeking Elective Positions

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President Muhammadu Buhari, Friday 13th May 2022 in Abuja, graciously bade farewell to outgoing members of the Federal Executive Council (FEC) who had tendered their resignation, affirming that a significant number of them had been sufficiently equipped to aspire to higher elective offices, including the Office of the President.

Speaking at a valedictory session for appointees leaving the cabinet to pursue political ambitions, the President said:

“I have no doubt that if the next President emerges from among former members of this cabinet, like any other aspirant, ample competence and outstanding service delivery would be on display. This will be part of our legacies to Nigerians.”

The President, who commended the departing public officers for serving the nation sacrificially, ‘with dignity and honour’, had at the last FEC meeting on Wednesday, May 11, 2022 directed that all Ministers and other political appointees aspiring to contest for elective offices in the 2023 general elections should resign from their current appointments.

“I note that some have complied while others are in the process of doing so. I would like to use this opportunity to commend your decision and courage to contest for elective offices and your compliance with my directive.

I also wish to thank you for your invaluable services to this nation through your contributions as Cabinet members. I wish you success in the upcoming elections and in your future endeavours”.

President Buhari told the ministers that looking back as the head of the team over the years, he had fond memories of incisive and robust discussions during cabinet meetings, rendering of performance reports during special sessions and presidential retreats.

He said, “In 2015, citizens of this country overwhelmingly voted for me to become the President of this nation on the platform of the All Progressives Congress (APC).

“Selecting members of the Cabinet went through a careful process so that the best and most competent could emerge. The performance of that class of 2015 proved me right.

“In 2019, Nigerians similarly re-elected me as President. Again the selection went through another meticulous process. That re-election was significant because it served as a referendum on our performance during the first term and it inspired me to bring back some of the members of the first cabinet either to their old Ministries or re-assigned to other sectors.

“New Members were also brought on board to inject fresh energies, skills and ideas to enhance the execution of government’s programs and policies.

The President acknowledged that prior to some of them joining his cabinet, they had made their marks in other areas as governors, legislators, entrepreneurs and core professionals.

He added that the experience and expertise they brought on board had significantly resulted in enormous development in various sectors and the accomplishment of government programmes.

“These include infrastructure, agriculture, health systems, financial management, administration of justice, building social safety net systems.” he opined.

Noting that the departure of some cabinet members had undoubtedly created a vacuum that should be filled, the President said appointments would be made without delay so that the business of governance would not suffer.

President Buhari urged the remaining members of the cabinet to show more diligence, resilience and commitment to serve Nigerians better, noting “the journey to the finish line is still very far”.

“Like always, there will be challenges to address, programmes to deliver and policies to implement. You must therefore brace up for more work and target increased accomplishments. The determination to leave important legacies for Nigerians should never be compromised,” the President told members of his cabinet.”

The following outgoing members of FEC were present at the valedictory session: ministers of Transportation, Rotimi Amaechi; Niger Delta Affairs, Godswill Akpabio; Science, Technology and Innovation, Ogbonnaya Onu, State for Petroleum, Timipre Sylva; Labour and Employment, Chris Ngige.

Others are the Attorney-General and Minister of Justice, Abubakar Malami (SAN), Minister of State, Mines and Steel Development, Uche Ogah, the Minister of Women Affairs, Pauline Tallen and the Minister of State for Niger Delta Affairs, Chief Tayo Alasoadura.

However, the Minister of State for Education, Emeka Nwajiuba who had earlier tendered his resignation, was not present at the valedictory session.

Speaking on behalf of the outgoing ministers, Mr Akpabio thanked the President for granting them the opportunity to serve and contribute their quota to nation-building.

He described working with the President as a ‘‘fantastic and knowledgeable experience’’, adding as they step aside, they would continue to be great disciples of Buhari.

“As we step aside from FEC, I want you to know that you have disciples in us. I want you to know that it is time for us to propagate Buharism. I want you to know that we are going to be working closely with the Minister of Information and Culture to take your message of transformation, love, patience, administrative sagacity to Nigerians.” he stated.

The Niger Delta Minister told the President that from his interactions with colleagues leaving the cabinet, it was like the story of the Spanish play of ‘‘sadness and joy.’’

“Sadness in the sense that we are going to miss the continuous daily and weekly interaction with a Father and learning from him; joy because we now have an opportunity to go to the wider audience in Nigeria to speak more of your achievements for this country”.

Lauding the President’s deep patriotism, Mr Akpabio said he was the “best president Nigeria could ever have had at a time of difficult circumstances”, hence prayed to God Almighty to grant the President a successful tenure and protect his family.

He added, “May one of us succeed you in order to continue the good legacies you have laid on ground. We have seen and know your vision. We know where you want the country to be.”

I doubt if any Nigerian, at the moment, would wish any of the Buhari’s disciples to succeed him come 2023, having observed how the present administration has so far performed in the area of security, corruption fight and economy, despite the earlier pledge by the government to totally kick insecurity and graft out of the country in its entirety.

Meanwhile, it is now very clear to the teeming Nigerians that the journey to the 2023 general elections is becoming juicier and more palatable, hence the need to be more vigilant and wiser as we collectively await the D-day.