Markets

Reps task CBN over proliferation of illegal banks

by KEHINDE AKINTOLA, Abuja

March 22, 2018 | 7:51 pm
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​The House of Representatives in Thursday urged Central Bank of Nigeria (CBN) to publish a list of certified financial institutions operating across the country as well as ensure the implementation of strong regulatory and monitoring laws of Nigeria.

The resolution was passed sequel to the adoption of a motion titled: ‘Need for Nigerians to be cautious of illegal banks,’ sponsored by Joseph Edionwele (PDP-Edo).

“The House notes that it is the Constitutional responsibility of the Federal Government to ensure the security, safety and welfare of its citizens.

“The House is aware that the activities of some illegal financial institutions, also known as wonder Banks have become alarming as they defraud depositors who are often enticed by promises of unusually high returns on investment.

“The House is determined to take proactive steps to stop the unwholesome practices by illegal Banks and other financial institutions in Nigeria,” the Edo lawmaker said.

Following the adoption of the motion, the House mandates the Committee on Banking and Currency, chaired by Jones Onyereri to investigate the unwholesome practices of those banks with a view to getting statistical analysis of such banks and their promoters and bring the defaulters to book and report back within four weeks for further legislative action.

Also at plenary, the House passed a Bill for an Act to amend the Industrial Development (Income Tax Relief) Act, Cap. I.17, Laws of the Federation of Nigeria, 2004 which seeks to increase the capital expenditure for companies applying for pioneer status through second reading.

In his lead debate, Henry Nwawuba, who sponsored the bill explained that the legislative framework seeks to “encourage investments into critical sectors of the country, and to give some relief for companies falling under Pioneer Status to aid their growth and development.”

He said that through this, companies already enjoying Pioneer Status can still benefit to increase their investment in Nigeria.

Nwabuwa stressed that the proposed amendment of the Act will also boost the economic diversification initiated by Federal Government and the ease of doing business in Nigeria.

Following the passage of the bill it was referred to the Committee of the Whole for further legislative action.

 

KEHINDE AKINTOLA, Abuja

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by KEHINDE AKINTOLA, Abuja

March 22, 2018 | 7:51 pm
  |     |     |   Start Conversation

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