The Nigeria Deposit Insurance Corporation (NDIC) has organised a stakeholders meeting for the business community in Kano State, as part of efforts to enlighten bank customers and other consumers of financial services on their rights.
The Managing Director of the NDIC Umar Ibrahim said Nigeria is in dire need of a positive attitude to revamp the economy in which customer protection will help promote financial stability in the country.
The aim of the town hall meeting, conceived to address the concerns and expectations of depositors especially small depositors who may lack or have limited capacity to fight for their rights in the complex financial system of modern banking.
A representative of the Central Bank of Nigeria, (CBN) Tijani Zakirai said the Apex Bank has been working with the NDIC and other stakeholders in the effective mobilization of bank customers across the country, but the lack of a sustained sensitization and enlightenment program remains a major hindrance to the country’s financial inclusion.
Meanwhile, traders and many other members of the Kano business community raised various financial and business questions why the regulatory authorities offered advises.
While the NDIC promises to sustain the program on annual basis, most people in hope to see more of this gathering for strong and effective financial system in the country.
The Central Bank of Nigeria (CBN) has disbursed 930 million Naira, to 310 young people under the Youth Entrepreneurial Development Programme.
The credit facility, which comes at a single digit interest rate is given to young people in productive activities, which will lead to the employment of 1 million other young people.
At a ceremony in Abuja, the CBN’s Deputy Governor in charge of Corporate Services, Alhaji Suleiman Barau explained that the programme is aimed at stimulating growth and promote economic development.
Nigeria’s unemployment rate is on the increase, according to the National Bureau of Statistics, unemployment rate has increased to 13.3 per cent from 12.1 percent in the first quarter.
The CBN is taking steps to address the situation by launching the Youth Entrepreneurship Development Programme introduced in March 2016, the programme is designed to simulate the entrepreneurial spirit among young people.
Beneficiaries of YEDP
There are 310 beneficiaries in this first phase and each of them will be receiving 3 million Naira to start their businesses.
However, the beneficiaries had issues with the collateral requirements issued by a commercial bank before they can access the funds but the Apex Bank, promised to review the requirements.
As those concerned in facilitating the programme enter into a meeting to review the conditions for accessing the funds, they hope that the programme will stimulate the entrepreneurial spirit of young people.
The Central Bank of Nigeria (CBN) has released the exposure draft of the revised guide to bank charges upholding zero commission on turnover and the newly introduced one Naira per mille maintenance fee.
According to a circular signed by the Director, Financial Policy and Regulation Department, Mr Kevin Amugo, the review aims to ensure that the provisions of the guide is in line with current realities.
The apex bank also says the review will address complaints from depositors, requests for clarification on the provisions of the guide and absence of a tariff regime for other financial institutions.
The exposure draft proposes 50 naira monthly local debit card maintenance fee per annum against the current 100 naira per annum being charged while foreign currency denominated cards are to be charged 4,200 naira per annum.
The planned refinery, fertiliser and petrochemical complex being built by Dangote Industries Limited will fetch Nigeria about $6 billion yearly in foreign exchange when completed.
This was revealed by the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, during a tour of the project site over the weekend.
The Apex Bank also stated that it was ready to provide forex for the importation of the equipment needed for the project.
The refinery, which has crude processing capacity of 650,000 barrels per day, is expected to come on stream by mid-2018 with major products such as petrol, high speed diesel and jet a1. The fertiliser plant is expected to start production in 2017.
Three projects are estimated to cost about $14 billion out of which Mr Aliko Dangote is contributing 50 per cent.
The Director, Monetary Policy of the Central Bank of Nigeria, Mr Moses Tule, has been speaking on the recent restrictions on the use of naira debit cards and dollar transactions in the country.
At an interactive session with journalists in Abuja, Mr Tule said that naira debit cards can no longer be used outside the country due to the abuse it has suffered in the hands of some persons who use it to transfer foreign currencies illegally.
He said that the nation’s foreign reserves has been heavily depleted due to the fall in the price of oil and as such, the apex bank had to place some restrictions on the use of naira debit cards in addition to banning the use of the United States dollar as a substitute for the naira.
The Central Bank of Nigeria (CBN) has reiterated that the provision of Bank Verification Numbers (BVN) to Bureau De Change operators for forex transactions, is targeted at promoting transparency within the market and does not attract any security risk.
In a statement released by the regulator, it explained that this became necessary owing to the fact that some customers are reluctant in disclosing their BVN to authorised dealers and buyers because of claims that there are risks to the disclosure.
The CBN assured customers that this move is expected to reduce the incidence of multiple purchases, round tripping and illicit transfer of funds and sanitize the retail segment of the market.
The apex bank added that the BVN is neither a payment instrument nor an account number, and therefore cannot be used to access any account by unauthorized users.
J.P. Morgan has concluded plans to remove Nigeria from its government bond index by the end of October 2015.
The statement is coming after an earlier removal notice on the absence of currency controls, leading to complicated transactions on the bond.
According to J.P. Morgan, some bonds would be delisted by the end of September, while the rest would be removed by the end of October.
Liquid Currency Criteria
The index provider said Nigeria would not be eligible for re-inclusion in the index for a minimum of 12 months. It added that to get back in the reading, Nigeria would have to satisfy the consistent liquid currency criteria.
Meanwhile, the Central Bank of Nigeria, in reaction to the notice, said “it disagrees with the index expulsion”.
The apex bank also said it had started to improve liquidity and transparency in the market, just as foreign exchange traders confirmed that U.S. Dollars rationing to foreign investors has begun.
Nigeria became the second African country after South Africa to be listed in J.P. Morgan’s emerging government bond index, in 2012. Its inclusion adds a 1.8 per cent weight to the index.
The removal will trigger unprecedented sales of Nigerian bonds, resulting in capital outflows and raising borrowing costs for the government.
The Central Bank of Nigeria (CBN) has joined the rest of the world to mark the World Environment Day.
The Governor of the apex bank, Mr Godwin Emefiele, said that the celebration is in compliance with the Central Bank’s commitment to the sustainable banking principles for which it is a signatory.
He says the bank is committed to preserving and efficiently managing resources through banking and non banking practices that would have a positive impact on the environment.
The Special Adviser to the Bank on Sustainable Banking, Aisha Usman-Mahmood, explained that besides practices in the apex bank that are environment friendly, the bank has also monitored compliance in other financial institutions.
According to her, incentives have been attached to the practice in order to encourage the banks to sustain the practice.
The Nigerian sustainable banking principles is a set of principles adopted by the Central Bank of Nigeria and other financial institutions in the country to contribute their quota to the protection and preservation of the environment.
Top officials of the Central Bank, including the Governor of the bank planted trees to commemorate the day.
A Former Governor of Central Bank and the Emir of Kano, Mohammed Sanusi II, has formally withdrawn his lawsuit challenging his removal as the governor of the Apex Bank.
His lawyer, Abubakar Mahmoud, told the National Industrial Court that Mr Sanusi who is now the Emir of Kano wishes to withdraw his case against President Goodluck Jonathan and two other defendants in the suit.
The defendants did not oppose the request and the president of the court, Justice Babatunde Adejumo struck out the suit.
Hearing was expected to continue in the suit, but the Emir requested that the suit be discontinued.
The Federal Government on its part asked that the court should hear its motion challenging the ruling of the Federal High Court which declined jurisdiction in the suit but went ahead to transfer the case to the National Industrial Court.
Lawyer to the Federal Government, however, said he would toe the line of the Emir, “if he (Sanusi II) withdraws his other suits pending in both the Federal High Court and the Appeal Court.
Having listened to the parties, Justice Adejumo adjourned the case to the November 7 to hear the motion filed by the government and urged the parties to explore an out of court settlement.
The House of Representatives has summoned the Central Bank (CBN) governor, Godwin Emefiele, over the new capital base of 35 million naira set for Bureau de Change (BDC) operators by the Apex Bank.
This was following a motion by a lawmaker, Ibrahim Gusau, that the new policy will send most of the operators out of business thereby increasing the national unemployment rate and heightening the insecurity risk in the country.
The House asked the Apex Bank to suspend the new policy, which members tagged elitist and racist in nature, pending the bank governor’s full brief on the policy.
The Apex bank’s reasons for the review was to correct observed deficiencies in the operation of (BDCs) in Nigeria, which they say has led to sharp practices in the foreign exchange market; check the depletion of external reserves, financing of unauthorized transactions and dollarization, among others.
Lawmakers at plenary, kicked against the 25 per cent increase, warning that it is ill timed and will cause much more harm than good.
While some other lawmakers supported the policy with the argument that it will ensure greater efficiency and improve the power of the naira against the US dollar, some disagreed with that assertion.
The lawmakers alleged that the news of the policy review has weakened the naira exchange against the dollar and will in no time send operators out of business.
They summoned the Apex bank governor to explain the review and asked that the policy be halted in the interim.