CBN - None BVN accounts would remain dormant

The Central Bank of Nigeria (CBN) Thursday, said that bank accounts without the Biometrics Verification Number (BVN) would be operated as “No Customer Initiated Debit”. The apex bank said this in a circular titled: “Classification on Accounts with BVN Related Issues” sent to all commercial banks and posted on its website. 

 

The circular signed by Director, Banking and Payments System Department, Mr Dipo Fatokun, said that such accounts would remain dormant until the account holder obtain and attach the BVN to the account.

Banks Struggle with Excess N1.5trn Deposits

LAGOS — Excess liquidity in the banking system rose to about N1.24 trillion, last weekend, following huge backlog of unmet foreign exchange demand for which the Central aBank of Nigeria, CBN, returned the Naira back-up funds to the banks on Friday.

 

There is also indication that the liquidity overflow will reach an all time high of N1.5 trillion by end of this week, following the maturity of Treasury Bills worth N257.9 billion which will be credited to the banks by CBN.

This is expected to see interbank money rates trending at very low levels with further erosion of margins and yields in money market instruments.

However, financial analysts expect CBN to mop up the unprecedented liquidity overflow with re-issue of Treasury Bills at a predetermined volume to match the desired liquidity level.

Stamp duty, Nigeria’s new Goldmine — NIPOST

The Nigerian Postal Service (NIPOST) said yesterday that implementation of the stamp duty policy would become a huge revenue base for the country. On January 19, the Federal Government announced that a stamp duty of N50 would be imposed on bank customers for money received into their accounts via electronic transfers, cash and cheque.

he CBN explained that the policy was part of efforts by the Federal Government to boost its revenue base in the non-oil sector. The Corporate Affairs Manager of the Lagos Island Territory of NIPOST, Mrs Valerie Ekeogu, told the News Agency of Nigeria (NAN) in Lagos that the stamp duty would give government extra income to build infrastructure.

CBN earmarks over N1trn to Fund Real Sector

The Central Bank of Nigeria, CBN, has set aside over N1 trillion to promote lending to the real sector of the economy with a view to stimulating economic activities in the country. The Governor of the CBN, Mr. Godwin Emefiele, disclosed this at the 21st Seminar for Finance Correspondents and Business Editors in Ibadan, Oyo State capital, yesterday.

Mr. Emefiele who spoke through the Deputy Governor, Corporate Services, Mr. Adebayo Adelabu, justified the massive interventions of the apex bank in financing the real sector of the economy, saying that the current trend in global central banking has gone beyond the core functions of monetary policy management. Infrastructure interventions.

MAN charges CBN to stop funding Bureaux de Change

The Manufacturers Association of Nigeria, MAN, has charged the Central Bank of Nigeria, CBN, to stop funding the Bureau de change market.

 

In a statement , the President of MAN, Chief Frank Jacobs, said: Ït is difficult to understand why, in the first instance, these outfits should depend on official allocation of forex by the CBN for their survival.

“The Bureau De Change market should provide alternative funding window to the economy, in which case they source their forex independently from other sources and supply to the forex market. It is difficult to understand their real functions with the kind of arrangement Nigeria has.

Nigerian Banks Struggle to meet $5 bn Forex Obligations

LAGOS — Nigerian banks are struggling to meet $5 billion foreign exchange obligations to importers and correspondent banks, reflecting the worsening foreign exchange situation in the country.

This was disclosed, yesterday, by Renaissance Capital in a report entitled: “Nigerian banks struggling for FX liquidity.”

 

The report stated that due to the inability to access foreign exchange from the Central Bank of Nigeria (CBN), banks  are having challenges sourcing dollars to meet outstanding foreign exchange, FX, obligations to importers and correspondents banks ranging from $2 billion to $5 billion.

CBN: Godwin Emefiele Promises robust economy, stable currency in 2016

Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele says the apex bank is evolving additional measures to boost the nation’s economy and stabilise the naira.

Emefiele made the remark at an Interactive Session with Media Editors in Abuja.

 

He declined to give details of the measures and modalities for their implementation.

Don’t ask me because I will not disclose our strategy for now’’, adding that doing so would be counter-productive and pre-emptive.

The CBN boss explained that the Nigerian economy was not as bad as being portrayed when compared with other economies in Africa.

FRC of Stanbic IBTC did not follow due process—CBN

The Central Bank of Nigeria, CBN, has condemned in strong terms recent sanctions approved by the Financial Reporting Council of Nigeria, FRCN, against the board and management of Stanbic IBTC Holding, SIBTCH, saying the council did not follow due process.

 

The FRCN had, amongst others, sacked four directors of Stanbic IBTC, including its Chairman, Mr. Atedo Peterside, for alleged infractions, while also calling for the withdrawal of its financial statements for the years ended December 31, 2013 and 2014.

But in a five-page letter, dated, November, 2, 2015, and signed by the CBN Governor, Mr. Godwin Emefiele, which was obtained by Vanguard, the apex bank also said the FRCN action was capable of eroding investors’ confidence as well as causing financial instability in the system.

October 31 remains deadline for BVN registration- CBN

Abuja - The Central Bank of Nigeria (CBN) insist saying October 31 remains the deadline for bank customers to obtain their Bank Verification Numbers (BVN).

CBN

Dipo Fatokun, Director, Banking and Payment System Department (BPSD) of CBN re-affirmed this while speaking to journalists on Wednesday in Abuja.

Fatokun said that at the deadline, bank customers that had not enrolled for BVN would not be able to access their accounts.

"Last week Friday the bankers communicated that there is no extension on the BVN.

Buhari endorsed restricing foreign- exchange trading

President Muhammadu Buhari says he is opposed to a further weakening of the naira, and has endorsed the Central Bank’s policy of restricting foreign-exchange trading.

“I don’t think it is healthy for us to get the naira devalued,” Buhari said in an interview in Paris with France 24, broadcast yesterday.

The Central Bank is providing ample foreign exchange to “essential services, industries,” he said.

 

The unqualified presidential backing of the policy of Central Bank Governor Godwin Emefiele, is bound to dampen the clamour by analysts and portfolio managers for a further weakening of the currency of Africa’s largest oil producer.

After a halving of oil prices in the past year, the Central Bank of Nigeria reacted to the naira’s drop to a record low in February by extending trading curbs and introducing bans on purchases of dollars by certain importers.

Businesses Nigerian Worsening Macro Environment

Nigerian Business owners and other professionals are groaning under the current economic crunch the country is witnessing since the fall in global oil prices started over a year ago.

Despite the Central Bank of Nigeria’s (CBN) attempt to stabilise the naira exchange with the dollar, commodity prices are on the increase with people complaining bitterly about the situation.

Speaking on the economy, Magdalene Anajamba, a cloth dealer in Lawanson Market, Lagos, noted that the failure of the President Muhammadu Buhari’s administration to name his minister has left the country at a standstill.

She added that prices of the clothes has increased so much that some of her regular customers have deserted her.

“In the last three months, items are on a high price. In fact the increase of items has made me lose a lot of customers. People cannot buy anymore because of the increase,” Anajamba said.

“Election made it worse, the cloth we buy for 10,000 per bag, during the period of the election we bought it for 13,000. I was thinking the prices would reduce after the election, instead it keeps increasing.”

Naira on watch ward to stableon CBN’s Dollar sales to BDCs

The naira is expected to remain relatively stable in the parallel market this week due to the Central Bank of Nigeria’s (CBN) regular dollar sales to the BDC segment and the interbank markets, according to analysts at Afrinvest Securities Limited and Cowry Asset Management Limited.

Last week, the naira traded flat at the interbank market (N199.10/$1), while the CBN maintained its intervention rate at N197/$1. In the parallel market, the naira improved to N211/$1 on Wednesday, from N211/$1.

N8bn scam: Cash Assistant has N134m in One Account, says EFCC

Hearing in the Central Bank of Nigeria N8bn mutilated currency fraud suit continued at the Federal High Court, Ibadan on Wednesday as the Economic and Financial Crimes Commission told the court that one of the accused persons, Mr. Ayodeji Alase, had N134m in one of his bank accounts.

The EFCC told the trial judge, Justice A.O. Faaji, that Alase, a primary six certificate holder, started work at First Bank as a guard before he was promoted to the position of a cash assistant.

 

The lead prosecution counsel for the EFCC, Mr. Rotimi Jacob (SAN), also told the court that the accused had property worth hundreds of millions of naira.

How we Discovered N8bn Currency Fraud – CBN

The Central Bank of Nigeria (CBN) yesterday explained how it discovered the N8 billion currency fraud. In a statement issued yesterday, Director, Corporate Communications, CBN, Alhaji Ibrahim Muazu said, “The Central Bank of Nigeria (CBN) would like to inform the general public of the chronology of events that led the Management of the CBN to handover some unscrupulous staff to the Economic and Financial Crimes Commission (EFCC) for prosecution.

Assets, liabilities of discount houses decline by 20.4% to N135.2bn

Total assets and liabilities of discount houses stood at N135.2 billion at the end of February 2015, showing a decline f 20.4 percent below the level at end-January 2015, Central Bank of Nigeria (CBN) has said.

 

The development was accounted for, largely, by the 80.2 percent and 10.9 percent fall in claims on banks and Federal Government, respectively.

Correspondingly, the decrease in total liabilities was attributed to the 76.1 percent and 14.0 percent fall in borrowings and money at- call.

Warning against use of Foreign Currencies for Domestic Transactions – CBN

Abuja – The Central Bank of Nigeria (CBN) on Tuesday warned individuals and corporate organisations against the use of foreign currency to carry out transactions in the country.

This is contained in a statement signed by Alhaji Ibrahim Mu’azu, Director, Corporate Communications, CBN, in Abuja. 

 

“The attention of the bank has been drawn to the increasing use of foreign currencies in the domestic economy as a medium of payment for goods and services by individuals and corporate organisations.