Banking and Finance

CBN Orders International Money Transfers in Naira

Guidelines were posted on the Central Bank of Nigeria’s website to regulate international money transfer services in Nigeria.

The document which was posted on Wednesday, June 18, is to make sure that global standard is observed by money transfer services companies, agents, banks, and all those engaged in the provision of international money transfer services.

In the document, the CBN ordered that henceforth, all inbound international money transfers must be paid to beneficiaries in naira only and the transfer must be done through a bank account or mobile money wallet.

CBN; Banks Ordered to Refund Excess CoT Charges

The Central Bank of Nigeria, CBN, has ordered banks to refund illegal fees charged above the regulatory maximum to customers over a period of one year. It has also banned banks from imposing account maintenance fees on the Commission on Turnover, CoT, of customers.

The order was given in a circular by the Director, Financial Policy and Regulatory Department, Mr. Frankline Ahonkhai to all deposit money banks.

CBN; Banks Earn N12.8bn Interest in Four Months

The Economic reports of the Central Bank of Nigeria for the first quarter of the year revealed that banks earned N12.86bn as interest on deposits placed with the Central Bank of Nigeria (CBN) from January to April.

Through the CBN’s Standing Lending Facility (SLF), banks can borrow money, they can also place their idle cash (excess liquidity) as deposits with the apex bank through its Standing Deposit Facility.

Emefiele Officially Assumes Office

As the new Central Bank of Nigeria’s Governor, Godwin Emefiele, took office today, Tuesday, May 3, 2014, he commenced on the task of maintaining macro stability.

Emefiele’s appointment follows the departure of Sanusi Lamido Sanusi who was suspended by President Goodluck Jonathan in February over allegations of financial recklessness because of his allegation that oil revenue meant for the Federal Account was missing.

Interbank Lending Rates Increases from 10.25%

Nigeria’s interbank lending rate increased to an average of 10.75% last week from 10.25% of the previous week as the Central Bank of Nigeria carried out thorough and uncompromisingly mops up liquidity to curb inflation and speculation in the local currency.

According to Reuters, one of the dealers said that In order to soak liquidity from the banking system, the CBN consistently issued Open Market Operation (OMO) debt notes last week.

Budget Deficit Reduced to 1% by Rebased GDP

The Minister of Finance, Dr Ngozi Okonjo-Iweala, on Friday, May 23, said that the rebasing of the Gross Domestic Product (GDP) from 1.9% has reduced the Nigerian’s budget deficit to 1%.

Dr. Ngozi gave this report after President Goodluck Jonathan signed the 2014 budget of N4.64trn which was passed in April.

The rebased GDP which put Nigeria ahead of South Africa to become Africa’s top economy also reduced Nigeria’s Dept-to- GDP ratio to 11% for 2013, against 19% in 2012.

CBN Releases New Code of Corporate Governance

A new code of corporate governance and whistle-blowing guidelines for Deposit Money Banks and Discount houses was released by the Central Bank of Nigeria on Tuesday, May 20, 2014.

The code of corporate governance which would be effective from October 1, 2014, prohibits governments from investing more than 10% stake in any bank. It also prohibits investors from owning more than five stakes in any bank without prior approval from the CBN.

Foreign ATM Cards Rejected by Nigerian Banks

For fear of possible invasion by hackers, majority of the Automated Teller Machines (ATM) in Nigeria are rejecting ATM cards issued by foreign lenders. This is becoming a threat to the Central Bank of Nigeria’s cash-less policy.
ATM cards issued by foreign banks were refused access on the ATM terminals of most of the banks.
Foreigners coming into the country and Nigerians who have ATM cards issued abroad have taken this complain to the Central Bank of Nigeria.

Shareholders Laud UBA Performance in 2013, Approve Dividend Payout

Shareholders of the United Bank for Africa (UBA) Plc Friday unanimously endorsed the bank’s annual report and accounts for the year ended 31 December, 2013 just as they commended the board and management for sustaining the bank’s profitability, despite the challenging operating environment.

PCIDSS; Deadline issued to banks and others by CBN

The Central Bank of Nigeria has given banks until November 30, 2014 to abide by the Payment Card Industry Data Security Standards in other to combat the electronic card-related frauds.

Switches and Processors companies were also given the injunction to be PCIDSS-certified on or before the date by the CBN.

According to the Central Bank, Banks and companies which fail to comply with the directive will be severely sanctioned.

The results of the pre-certification assessment carried out by three qualified system assessors appointed by the CBN brought about the deadline.