Banking and Finance

Bio-metric Registration Begins April 1

Over a month and half after the project was inaugurated by suspended Central Bank of Nigeria Governor, Mr. Lamido Sanusi, biometric registration of bank customers will now commence on April 1. Sanusi had on February 14 inaugurated the registration exercise on behalf of Bankers’ Committee at the CBN head office in Lagos. He stated that after 18 months of the exercise, bank customers would not be able to do any transaction without their fingerprints.

CBN Reveals Procedures for E-Payment of Taxes, Others

The Central Bank of Nigeria (CBN) has introduced a framework on the end-to-end electronic payment of salaries, pensions, suppliers and taxes in the country.

The central bank, said the objective of the guidelines fully align with the core objectives of the National Payment Systems Vision 2020 (NPSV), which is to ensure the availability of safe and effective mechanisms for conveniently making and receiving all types of payment from any location and at any time, through multiple channels.

IFC, CBN Moves to Enhance Sustainable Banking

The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria will host the second International Sustainable Banking Forum in March, 2014 as part of efforts to enhance better banking principles in the country. The forum will serve as a platform to share international and local experience and best practice on sustainable banking, and to build partnerships to support sustainable banking in emerging markets.

Cashless Policy to Start Nationwide From July 1

The Bankers’ Committee resolved to extend the cashless policy to all states in the country from July 1, 2014.

Speaking to journalists at the end of a meeting by the committee on Tuesday in Lagos, the Head, Shared Services, Central Bank of Nigeria (CBN), Mr. Chidi Umeano, said the decision was taken as a result of the success recorded in states where the policy had been executed.

Interbank Rates Spike as CBN Effects CRR Hike

The Central Bank of Nigeria (CBN) effected the 75 % Cash Reserve Requirement (CRR) on public sector deposits in banks, this caused a significant increase in Nigerian Interbank Offered Rates (NIBOR) to an average of 14.68% on Wednesday. This development had been predicted by most financial market analysts.

It was gathered that the central bank withdrew about N750 billion from the banking system as a result of the monetary policy measure.

CBN Reveals Framework for Mortgage Refinance Company

 In trying  to ensure the success of the recently introduced Mortgage Refinance Company (MRC), the Central Bank of Nigeria (CBN) Thursday introduced a regulatory and supervisory framework for the operation of the company. In a  document posted on the central bank’s website yesterday, it was stated  that the MRC shall commence operations with, and maintain at all times, a minimum paid-up capital of N5 billion. As well as  a minimum ratio of core capital to total assets (leverage ratio) of not less than five per cent.

2014 Budget Federal Govt Estimates N4.6tn

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, yesterday presented the 2014 budget estimates of N4.642tn to the Senate. She clarified that the sum of N3.73tn was being expected as Federal Government’s projected revenue. She, however, explained that the Subsidy Reinvestment and Empowerment Programme funds were not part of the estimates. But the provision for SURE-P, according to the budget highlight was put at N268.37bn
The Federal Government’s capital expenditure for 2014 is at about N1.1tn, or 27% of the budget.

Nigeria’s Pension Industry and Infrastructural Development

The evolution of Nigeria’s pension industry is similar to that of most countries in the world. Most of the countries started with the Defined Benefit (DB) scheme, but later changed, either completely, to the Defined Contributory (DC) scheme (common in Switzerland, Poland and Chile), or a combination of the two (as seem in Spain, United States of America and the United Kingdom). Even those that currently offer only the DB scheme are already considering the adoption of the DC scheme.