People, I do not believe that the Central Bank of Nigeria (CBN) will convert US dollars, Euro and Pounds Sterling in Nigerian bank accounts into Naira as it battles the shortage of foreign currencies in the nation. So, that is a pure rumour, and happily the apex bank has put a statement (see below) that it has no plan to do such.

Yet, if nothing is changed on the framework upon which Nigeria is currently run, I do not rule it out that by 2028, depending on who becomes the next president of Nigeria in 2023, that hitting these accounts would not happen.

Today, there is no need for that as Nigeria has many assets to source for funds including universities which can be privatized or sold!

The statement below.

CBN Categorically Denies, and Strongly Condemns Peddlers of Rumor on Domiciliary Account Holdings,’

“The attention of the Central Bank of Nigeria (CBN) has been drawn to a fake circulation, in social media circles, of a circular with a fake CBN logo curiously dated “13 September 2021”, and purportedly issued by its Trade and Exchange Department to the effect that all Deposit Money Banks, International Money Transfer Operators (IMTOs) and members of the public are to convert domiciliary account holdings into naira.

“We wish to reiterate that the Bank has not contemplated, and will never contemplate, any such line of action. The speculation is a completely false narrative aimed at triggering panic in the foreign exchange market.

It will be recalled that the Bank had previously assured members of the public that there was no plan whatsoever to convert the foreign exchange in the domiciliary accounts of customers into Naira in order to check purported shortage of availability of the United States dollars.

Operators of domiciliary accounts and other members of the banking public are therefore advised to completely disregard these fictitious documents and malicious rumours, and go about their legitimate foreign exchange transactions, as we have no doubt that these rumours
are only aimed at impugning the integrity of the CBN and activating chaos in the system.

The public should note that any circular issued by the Central Bank of Nigeria (CBN) is posted on its website (www.cbn.gov.ng) for the attention of the general public.

We also wish to warn corporate bodies and members of the public against the unauthorized use of the Bank’s logo for any purpose whatsoever. We have drawn to the attention of appropriate authorities to this and culprits will be sanctioned accordingly.”

The statement, which was dated September 11, 2021, was signed by Osita Nwanisobi, Director, Corporate Communications, Central Bank of Nigeria.

The Value Added Tax (VAT) controversy between states and the federal government has taken a new turn. In a ruling on Friday, the Abuja division of the Court of Appeal temporarily suspended the execution of the judgment of the Federal High Court in Port Harcourt, stopping the Federal Inland Revenue Services (FIRS) from collecting VAT and Personal Income Tax (PIT) in Rivers State.

The appellate court specifically ordered parties to the legal dispute to refrain from implementing “the judgment pending the hearing of the motion filed by the FIRS for an order staying the execution of the judgment.

Justice Haruna Tsanami who led the three-member panel ruled that it was for the overriding interest of justice for the parties who submitted themselves before the court not to take further steps that would destroy the res.

“It is hereby ordered that status quo ante belium should be maintained pending the hearing of the motion,” Tsanami said.

Meanwhile, the court has adjourned till September 16 to hear the application by the Lagos state government seeking to be joined in the dispute.

The court also ordered the appellant to file and exchange their processes in the motion for joinder filed by Lagos state just as the respondents were equally given two days to respond.

The ruling came just as Lagos State governor, Babajide Sanwo-Olu, signed the Bill of VAT collection into law to give the State a legal backing in its quest to collect the taxes instead of the federal government.

Meanwhile, the Rivers State governor Nyesom Wike, has inaugurated a four-man tax appeal commission with a mandate to deal with “complaints arising from those who do not want to pay their taxes, while also prevailing on those who believe that the tax body is doing what it is not supposed to do.”

The situation has further compounded the controversy, with no party willing to back down, it’s going to be a long legal battle.

The FIRS had, in a circular distributed during the week, urged taxpayers not to panic over the trial judgment that granted Rivers State the right to collect taxes under its jurisdiction.

“The FIRS having lodged, in the Court of Appeal, both an appeal against the decision of the Federal High Court sitting in Rivers State in Suit No. FHC/PH/CS/149/2020, Attorney General of Rivers State Vs Federal Inland Revenue Service, and an injunction pending appeal of the said judgment, assures taxpayers that there is no cause for alarm.

“The Federal High Court ruling should not breed any confusion as to the obligations of taxpayers. Taxpayers should continue to comply with the Value Added Tax Act pending the final determination of the appeal.

“Tax payers should continue to honour their tax obligations under the VAT Act. Failure to do this would put them on a collision course with the law. The Service is confident that, given the extant laws, the arguments and case put forward, it will earn a favoured judgment at the appellate court,” the Service said.

With all parties laying a claim of being backed by the law, the winner of the tax legal battle will be determined by how the appellate and Supreme Courts interpret the law. The court had earlier dismissed FIRS’ prayer for stay of execution of the trial judgment.

Benue and Oyo States

Meanwhile, Benue and Oyo states are also evaluating the regulation and would likely follow Rivers and Lagos state if the Supreme Court rules for Rivers State. From governor of Benue state, Samuel Ortom.

“I have asked the Attorney-General and Commissioner for Justice to study the law and let me know its implications.

“I don’t think there is anything wrong in embracing the law as long as it conforms with the constitution, whether it affects states positively or negatively.

“I support the governors of Rivers and Lagos States for what they are doing.

“Anything that is in tandem with the rule of law I will accept, but if anyone thinks otherwise the best thing to do is to go to court.

“I heard they are in court and if the case is decided otherwise by the Supreme Court we will accept it,” he said.

The Epic v. Apple legal tussle came to an end on Friday morning, with Judge Yvonne Gonzalez-Rogers issuing a permanent injunction, putting new restrictions on Apple’s App Store rules that had prohibited developers from using external links for payment.

The decision is the result of a fight that’s been brewing for years between Apple and larger developers, particularly in gaming, whose businesses account for a hefty majority — 70%, the judge noted — of App Store revenue.

The ruling reads partly:

Apple Inc. and its officers, agents, servants, employees, and any person in active concert or participation with them (“Apple”), are hereby permanently restrained and enjoined from prohibiting developers from (i) including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to In-App Purchasing and (ii) communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.

Putting a permanent end to what has been described as monopolistic practice by Apple, the ruling said that iOS apps must be allowed to direct users to payment options beyond those offered by Apple. The injunction is scheduled to take effect in 90 days — on December 9th — unless it is enjoined by a higher court.

However, Judge Gonzalez-Rogers sided with Apple in the issue of its contract with Epic, and gave Apple its biggest win of the year. The Judge said that “the court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws.” That does not only exonerate Apple from Epic’s allegation, it takes the tech giant off the hook of federal watchdogs who have placed it under antitrust investigations over the iOS Store alleged monopoly.

The ruling was based on the interpretation of the marketplace. The judge rejected both parties’ definition of the marketplace at issue in the case and redefined it. “The relevant market here is digital mobile gaming transactions, not gaming generally and not Apple’s own internal operating systems related to the App Store,” Gonzalez-Rogers wrote.

Based on this market definition, Gonzalez-Rogers explained that “the court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws,” she added. “Nonetheless, the trial did show that Apple is engaging in anti-competitive conduct under California’s competition laws.”

But the court ruled that Epic Games was in breach of its contract with Apple when it implemented the alternative payment system in the Fortnite app. It ordered Epic to pay Apple 30% of the $12 million it earned when it introduced its alternative payment system in Fortnite, — a sum of more than $3.5 million.

Apple said the ruling is a victory for the App Store model which has grown over the years through rigorous competition.

“Today the Court has affirmed what we’ve known all along: the App Store is not in violation of antitrust law,” an Apple spokesperson said. “As the Court recognized ‘success is not illegal.’ Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world. We remain committed to ensuring the App Store is a safe and trusted marketplace that supports a thriving developer community and more than 2.1 million U.S. jobs, and where the rules apply equally to everyone.”

Epic Games CEO Tim Sweeney tweeted that Fortnite will return to the App Store when and where it can offer in-app payment in “fair competition with Apple in-app payment,” and would pass along the savings to consumers.

“Thanks to everyone who put so much time and effort into the battle over fair competition on digital platforms, and thanks especially to the court for managing a very complex case on a speedy timeline,” he wrote. “We will fight on.”

The dispute between Apple and Epic Games has lasted for years. It took a drastic turn in August 2020, when Epic installed an alternative payment feature to avoid paying the 30% commission Apple has imposed on apps in the iOS App Store. Apple sees the commission as operating cost while Epic sees it as a monopolistic tax.

When Apple responded by removing Fortnite from the app store, Epic filed a legal complaint. However, as The Verge noted, Epic’s lawsuit has triggered inquiries into Apple Store’s activities outside the US, with watchdogs in Japan and South Korea forcing Apple to allow for alternate means of payment in its apps store with new laws.

Although recently, amidst the growing controversy that surrounds Apple’s App Store policies, the smartphone maker has made some changes in attempt to calm nerves; including slashing the 30% commission for apps making less than $1 million yearly, the ruling allowing for external links for payments is likely going to spark a flurry of antitrust inquiries against Apple outside the US.

Shares of gaming companies went up following the ruling on Friday. AppLovin, which owns several game studios saw its shares went up 8.5%, while mobile game developer Zynga rose 6.28%. The shares of Playtika, an Israeli game company with many popular games in the iOS Store recorded a 6.08% rise, while Roblox, a gaming app for kids, jumped 1.77%.

I just signed and executed  a concluding part of Tekedia Capital investment in Mecho Africa Autotech. Team, so proud of all of you. To all the mechanics, I commend all of you for the superior execution. You are very amazing. Good People, Mecho Autotech is Nigeria’s finest automobile service shop! Period. Banks, insurers, governments, etc, if you are looking for quality, Mecho is here to service Nigeria. It also helps to simplify your vehicle claim management by providing predictable world-class services.

For Individuals: Individuals who sign up their private vehicles for routine maintenance receive 3 regular service and 1 complete servicing with scheduled free inspection. All aimed at reducing maintenance during the lifespan of your vehicle.

For Businesses: When businesses sign up to routine maintenance, Mecho maintains their entire fleet, giving granular reports of the state of each car, along with repair history, invoices and receipts.

Mecho – leading Ndubuisi Ekekwe to ring that special bell in Lagos, London or New York. Tekedia Capital congratulates Mecho Team for its YCombinator graduation.

A California court  has ruled that Apple cannot stop app developers from directing users to third-party payment options. That was part of the outcome after Fortnite-maker Epic Games took Apple to court on some of Apple’s app store policies, including the requirements that all apps must use  Apple’s own in-app payment options. Apple picks about 30% of all payments as its commissions.