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Tag: Banks

  • CBN unveils list of licensed Deposit Money Banks in Nigeria

    CBN unveils list of licensed Deposit Money Banks in Nigeria

    The Central Bank of Nigeria (CBN) has released the latest update comprising 44 licensed deposit money banks across the nation.

    This announcement was made public through a comprehensive list published on the CBN’s official website, marking Tuesday as the disclosure date.

    As per the CBN’s documentation, a total of seven banks, namely Zenith Bank, Access Bank, First Bank, First City Monument Bank, United Bank of Africa, Fidelity, and Guaranty Trust Bank, boast Commercial Banking licenses with international authorization, effective as of April 26, 2024.

    Additionally, fifteen banks hold commercial banking licenses with National Authorization, while four others operate under regional authorization. Moreover, the list includes four non-interest banks authorized nationally.

     

    The CBN also underscores the presence of six licensed merchant banks operating with national authorization and highlights the expansion of financial holding companies, which now stand at seven.

    Furthermore, the regulatory body mentions the representation of a Mauritius commercial bank through its office in the country.

    This compilation arrives following previous directives from the CBN to increase the minimum capital requirements across all banks in Nigeria, aiming to fortify the nation’s financial sector.

  • BVN, NIN: Banks close over 2 million accounts in Nigeria

    BVN, NIN: Banks close over 2 million accounts in Nigeria

    The first quarter of 2024  Q1’24 has seen Nigerian commercial banks close at least 2 million bank accounts across the country.

    It was gathered that the move was aimed at eradicating questionable accounts, particularly as some customers failed to comply with regulatory orders on the linkage of their accounts to the National Identity Number, NIN.

    It would be  recalled that the Central Bank of Nigeria, CBN, had in December 2023, issued a directive to all commercial banks in the country to restrict tier-1 accounts without proper NIN and Biometric Verification Number, BVN,

    In a recent report by the Nigerian Interbank Settlement System, NIBSS, it was gathered that over two million accounts were closed in line with the CBN directive.

    The NIBSS also indicated that the number of inactive bank accounts grew month-on-month, MoM, by four million or 2.0 per cent to 19.7 million in March 2024 from 19.3 million in the previous month, February.

    However, the report which was sighted by Vanguard also indicated that the number of active bank accounts in the country grew by 6.62 million or 3.0 percent to 219.64 million from 213.02 million in February.

    A bank account is classified inactive when it records zero transactions including deposits, withdrawals, transfers or point-of-sale transactions for six months.

  • NDIC pays over N1.7bn to customers of closed banks

    NDIC pays over N1.7bn to customers of closed banks

    Nigeria Deposit Insurance Corporation (NDIC) says it has paid insured sum of over N1.7 billion to customers, following the revocation of licenses of Microfinance Banks (MFBs) and four Primary Mortgage Banks (PMBs).

    Mr Bello Hassan, Managing Director/Chief Executive Officer, NDIC, said this at the 2023 NDIC Editors Forum, on Saturday in Lagos.

    The meeting had the theme, “Stocktaking of Deposit Insurance Practice: Assessing the Past, Evaluating the Present and Forecasting the Future.”

    Hassan said, “recall earlier this year the Central Bank of Nigeria revoked the licenses of 183 institutions comprising Microfinance Banks and Primary Mortgage Banks.

    “And we quickly advertised and told affected depositors to get the required documents and come forward for verification so that we can pay them the insured amount.

    “So, in terms of insured amount, we have paid more than 1.7 billion to more than 22,000 customers and we are calling on those customers that had no Bank Verification Number attached to their accounts to come forward to get their claims verified so that we can pay them the insured amount.

    “We are still on that. So, I’m using this opportunity to appeal to those depositors to come forward so that they can be verified and their claims paid.”

    The insured deposit is the first claim that NDIC pays to depositors upon revocation of a bank’s licence by the CBN.

    The maximum specified limits for the MFB and PMB sub-sectors are N200, 000 and N500, 000 per depositor per bank, respectively.

    The NDIC boss said the Deposit Insurance System implemented by the corporation was an important component of the nation’s financial safety net.

    He said the corporation’s operations focused on minimising banks’ risks and failures through strict banking supervision, reimbursement of insured depositors in the event of failure, and orderly liquidation of failed banks.

    “It complements the efforts of the Central Bank of Nigeria to achieve a secure and stable banking system as well as support the fiscal authority in maintaining stability within the broader financial system, serving as the foundation for economic growth and development,” he said.

    Hassan also said the corporation, like other financial safety net players in Nigeria, had been faced with similar challenges that had impacted the nation’s financial system.

    These challenges, he said, were caused by two main factors: macroeconomic factors and the changing dimensions of the financial services industry.

    “Though some of the challenges are universal, others are unique and domesticated.

    “It is within this context that the NDIC aligns itself with the Central Bank of Nigeria’s efforts towards strengthening the banking industry through enhancing prudential thresholds and other regulatory instruments,” Hassan said.

    NAN

  • Fidelity, Zenith, Access made the list of most capitalized banks in Q3 2023

    Fidelity, Zenith, Access made the list of most capitalized banks in Q3 2023

    Leading financial institution, Fidelity Bank, has been listed as one of most capitalized banks in Nigeria based on Q3 2023 financial results.

    According to an article published in Thisday newspapers, the bank reported a capital base of N410.75 billion as of September 2023 against N314.3 billion in 2022. Also featuring on the list are Zenith Bank, UBA, First Bank, Access Holdings, First Bank Holdings, Ecobank, GTCO Holdings, Stanbic IBTC Holdings, FCMB and Sterling Financial Holdings.

    Adron Homes Shines At This Years 10th TM News Summit And Awards 2023
    Following the announcement of the planned recapitalisation of commercial banks by the Central Bank Governor, Dr. Olayemi Cardoso, at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria on 24 November 2023, industry watchers have anticipated the announcement of capital raising exercises by banks.

    Incidentally, Fidelity Bank had taken the proactive approach by securing shareholders’ nod to raise additional capital earlier in the year. At an Extra-Ordinary General Meeting (EGM) held virtually on Friday, 11 August 2023, the bank’s shareholders unanimously approved a capital raising exercise via a Public Offer for up to 10 billion Ordinary Shares and Rights Issue of up to 3.2 billion Ordinary Shares representing one new share for every 10 shares held to new and existing shareholders respectively.

    Below is the list of the 10 most capitalised banks as of September 2023:

    • Zenith Bank – N1.92 trillion

    The third quarter 2023 financial report of Zenith Bank Plc places the bank at the topmost position in terms of shareholders fund which it put at approximately N1.92trillion, as against N1.31trillion in 2022. The bank also ranks as Nigeria’s highest profit generator so far in 2023, with a pre-tax profit of N505 billion.

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    This eminent position was corroborated by Nairametrics, an online platform that noted that with a capital adequacy ratio (CAR) of 20.1 per cent as of September 2023, as against 19.8 per cent as of December 2022, the bank’s stability is not in question.

    • UBA -N1.778trillion

    Following Zenith Bank closely is United Bank for Africa, Nigeria’s second-highest profit generator this year, which is also the second most capitalised bank as of September 2023. The bank posted a total shareholders fund of N1.778 trillion as of Q3, 2023. In 2022, the figure was N922.1 billion, with a capital adequacy ratio of 28.3 per cent, which suggests stable financial health at the end of FY 202

    • Access Holdings – N1.64 trillion

    Access Holdings is another Tier 1 capital bank with a total equity of N1.64 trillion as opposed to N1.231 trillion in 2022. With this figure, Access Holdings ranks as Nigeria’s third-largest bank in terms of capital base. Its Nigerian subsidiary, Access Bank Nigeria has a total equity of N1.208 trillion as of September 2023, which is a stable figure in case of any recapitalisation exercise.

    •First Bank Holdings – N1.37trillion

    The ranking in terms of capital base listed FirstBank as the fourth on the list. The Third Quarter 2023 results of First Bank Holdings released in September 2023 showed that the parent company of First Bank Limited has a total equity of N1.37 trillion. However, its commercial banking arm, First Bank Limited has a capital base of N1.287 trillion. In 2022, the holding company posted a capital of 995.7billion.

    •Ecobank- N1.37trillion

    The bank’s third quarter 2023 performance result submitted to the Exchange last week showed it recorded a shareholders fund of N1.373 trillion as against N935 billion in the same period of 2022, placing it at the fifth position of the most capitalised banks.

    • GTCO Holdings – N1.27trillion

    GTCO Holdings, the parent group of GTBank has a total equity of N1.273 trillion, a year-to-date increase of 36.7per cent from the N931 billion recorded at the start of 2023.

    While GTCO’s total equity is put at N1.27 billion, this is cumulative of all the group’s subsidiaries. However, its Nigerian subsidiary, GT Bank Nigeria holds a total capital base of N1 trillion as of September 2023 which is still a substantial figure ahead of any recapitalisation exercise.

    •Stanbic IBTC Holdings – N471billion

    Stanbic IBTC Holdings, the Nigerian subsidiary of Standard Bank Group is the parent of Stanbic IBTC Bank and it has a capital base of N471 billion as of September 2023. Its capital was N407.7 billion in 2022.

    • Fidelity Bank Plc – N411 billion

    With a capital base of N410.75 billion as of September 2023 against N314.3 billion in 2022, Fidelity Bank sits in quite a comfortable place ahead of any recapitalisation exercise for Nigerian banks.

    In September 2023, the bank made a foray into international banking by acquiring the UK division of Union Bank of Nigeria.

    • FCMB -N373.7billion

    With a capital base of N373.7 billion as of September 2023 as against N275.8 billion in 2022, FCMB ranks as the 9th most capitalised bank in Nigeria. With a capital adequacy ratio of 16.0per cent as of December 31, 2022, FCMB’s CAR was just a little above the regulatory 15% required by the CBN.

    • Sterling Financial Holdings – N165.84billion

    Sterling Bank Limited is a full-service national commercial bank licensed by the Central Bank of Nigeria, and it’s a subsidiary of Sterling Financial Holdings Plc. The bank provides financial services to individuals, small businesses, and large corporations.

    Sterling Bank’s capital base stood at N165.84 billion when total liabilities of N2.08 trillion were removed from total assets of N2.25 trillion. Its capital in 2022 was N154 billion.

  • BVN, NIN: Sanction banks, not customers – Expert urges CBN

    BVN, NIN: Sanction banks, not customers – Expert urges CBN

    A Financial Expert, Mr Okechukwu Unegbu, has urged the Central Bank of Nigeria (CBN) to sanction banks that allowed customers to operate accounts without their BVN and NIN.

    Unegbu, a past president of the Chattered Institute of Bankers of Nigeria (CIBN), said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

    He spoke against the backdrop of the recent directive by the apex bank to freeze all bank accounts without a Bank Verification Number and National Identification Number from April 2024.

    The directive was contained in a recent circular issued by the CBN to all Deposit Money Banks (DMBs).

    The circular was jointly signed by the Directors, Payments System Management Department, Chibuzo Efobi, and  Financial Policy and Regulation Department, Haruna Mustapha.

    The apex bank also directed that all the BVN or NIN associated with all accounts/wallets must be electronically revalidated by January 31, 2024.

    It said the directive was part of efforts to promote financial system stability and strengthen the Know Your Customer (KYC) procedures in all financial institutions.

    According to Unegbu, the apex bank should spare the account holders and impose heavy sanctions on the DMBs.

    “It is the fault of the DMBs; instead of punishing the customers, the CBN should sanction the banks heavily.

    “They were instructed to ensure that every account holder had the BVN and NIN, but they failed to comply because of the greed to have deposits,” he said.

  • CBN moves to increase capital base of banks

    CBN moves to increase capital base of banks

    The Central Bank of Nigeria, CBN, says that Nigerian banks were not adequately capitalised to meet the need of a $1 trillion economy which the current administration was aiming to achieve, hence the need to increase the capital base of banks in the country.

    CBN Governor, Dr Olayemi Cardoso, spoke at the 2023 Bankers’ Dinner on Friday, even as he noted that, there had been stability in the banking sector, in the country.

    His words: “Will Nigerian banks have sufficient capital relative to the finance system’s needs in servicing a one trillion dollar economy in the near future? In my opinion, the answer is no, unless we take action.

    “Therefore, we must make tough decisions regarding capital adequacy. As a first step, the Central Bank will be directing banks to increase their capital.”

    Cardoso, also spoke of the importance of technology in delivering financial services as well as enhancing financial inclusion, just as spoke about financial institutions that have breached their licences regarding the use of technology to facilitate payment. According to Cardoso, the apex bank has observed that some institutions were operating outside the approved guidelines.

    “Any intentional or unintended non-compliance will be subject to sanctions as operators have the responsibility to ensure that they are licenced for the activity they undertake.

    “As we conduct a comprehensive review of the licencing framework for payment services, we will engage in extensive consultations to engage a new regulatory and compliance framework that is suitable for the technology-driven payment services sector,” he added.
    The CBN boss also weighed in on the 43 items previously restricted from accessing foreign exchange, forex, from the investor’s and exporters’ I&E, window.

    “During the period when the 43 items were restricted, there was a 51 per cent increase in trade evasion by importers accessing the foreign exchange market resulting in a revue drop of approximately $1.4 billion annually between 2015 and 2019,” he further said.

  • Kano at a standstill as banks, offices, power sectors shut down over strike

    Kano at a standstill as banks, offices, power sectors shut down over strike

     

    The Nigeria Labour Congress, NLC, Kano State chapter has joined the nationwide warning strike with the shutting down of government offices and other critical sectors.

    It was gathered that as early as 5 a.m. on Tuesday morning, the labour union were on ground to carry out enforcement.

    The State Vice Chairman of the union, Ado Riruwai who led the enforcement exercise, told Vanguard that it has shut down all government offices in the state.

    Riruwai, who doubles as the Chairman, Private Sector Unions in the state, also said all power sector and banks were under key.

    He further said that they were proceeding to the airport to ensure no flight took off from the airport.

    According to him, “we have shut down all power sector. Banks are not operating. We heard a flight took off this morning from the airport, we are heading down there to ensure no flight take off from the airport.

    “All government offices were under key and lock,” Riruwai stated.

    Among facilities shut down include, the Kano Electric Distribution Company, KEDCO head office.

    Recall that the NLC had given notice to embark on the two-day warning strike to protest the excruciating mass suffering and impoverishment experienced around the country, occassioned by the fuel subsidy removal.

  • NLC warning strike: Banks, Aviation, Electricity Workers, others shut services

    NLC warning strike: Banks, Aviation, Electricity Workers, others shut services

    Following the two days warning strike called by the Nigeria Labour Congress (NLC), Banks, electricity and aviation workers, and other sectors of the Nigerian economy have shut their doors against customers in compliance with the two days warning strike called by the Nigeria Labour Congress (NLC).

    Checks in many Banks in Lagos and Abuja show that customers are not allowed into the banking hall. This also affects other sectors, including Insurance, Aviation, Electricity companies, federal secretariat in Abuja, and others.

    The strike followed the decision of NLC to boycott the meeting convened by the Minister of Labour and Employment, Simon Lalong, to avert the two-day warning strike.

    This is just as affiliate unions of the NLC, including the National Union of Air Transport Employees, the Association of Nigeria Aviation Professionals, the National Association of Aircraft Pilots and Engineers, among others have, in a joint circular, directed all stakeholders in the aviation sector to comply with the NLC’s directive to join the strike.

    The NLC had last Friday issued the two-day warning strike notice over current hardship caused by the removal of petrol subsidy.

    Only the leadership of the Trade Union Congress (TUC) led by its President Festus Osifo attended the meeting with government officials.

    Before the evening meeting went into a closed-door session, Osifo said the TUC leadership would continue to engage with the federal government to ensure that its demands are addressed.

    He said, “In the palliatives that were rolled out, we’ve not seen anything put in place for federal workers. We need a wage award. The palliatives rolled out by the government are not far – reaching. We believe that the government can do much more.”

    In a communique released on Monday by the TUC at the end of its National Executive Council meeting held on Sunday, the TUC said some of the steps taken by the government to cushion the effects of subsidy removal on workers were welcomed.

    It urged the government to increase the amount provided for palliatives as the N5bn given to each state was “grossly inadequate.”

    “That palliatives in themselves do not solve the long term challenges or hardship faced by the people, such long lasting programmes and initiatives should be evolved that will properly address the sufferings of the people in the long term,” the communique read in part.

    Lalong said the government set a two-week timeline on wage award, tax exemptions and allowances to public sector workers to “cushion the pains and anguish they are going through as a result of subsidy removal,” as put forward by the TUC.

    The minister said: “We agreed that there should be no strike within the two week period while we’re doing our deliberations and working towards realising some of these objectives.”

    Earlier at a press briefing, Lalong had appealed to the labour to prevail on all its affiliate unions to suspend their planned strike.

    He said the government would neither take workers for granted nor fail to appreciate their support and understanding.

    “We shall continue to pursue policies aimed at massive employment generation in all sectors of the economy as well as look into immediate challenges that have emerged from the policies of the government. We cannot do this in an atmosphere devoid of industrial peace.”

  • Identification process: CBN directs banks to obtain customers social media handles

    Identification process: CBN directs banks to obtain customers social media handles

    To further deepen the identification process in the banking system, the Central Bank of Nigeria has directed Financial Institutions to obtain the social media handle, e-mail addresses, telephone numbers, residential addresses of customers.

    The apex bank revealed this in its newly released ‘Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023’ document.

    According to CBN, the new regulation was created to provide additional customer due diligence measures for financial institutions under its regulatory purview.

    “To provide additional customer due diligence measures for financial institutions under the regulatory purview of the Central Bank of Nigeria to further their compliance with relevant provisions of the Money Laundering (Prevention and Prohibition) Act (MLPPA), 2022, Terrorism (Prevention and Prohibition) Act (TPPA), 2022, Central Bank of Nigeria (Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations, 2022 (CBN AML, CFT and CPF Regulations) and international best practices.

    “And enable the CBN to enforce compliance with customer due diligence measures in line with the CBN AML, CFT and CPF Regulations.

    “For Individuals legal name and any other names used (such as maiden name), permanent address (full physical address), residential address (where the customer can be located), telephone number, e-mail address, and social media handle; date and place of birth, Bank Verification Number, Tax Identification Number, nationality, occupation, public position held, and name of employer.”

    It stressed that an individual must have any of an unexpired passport, national identification card, residence permit, social security records, or driver’s license.

    “Type of account and nature of the banking relationship, and signature, and politically exposed person status.”

     

  • Relief for Nigerians as banks confirm receiving enough cash, load ATMs

    Relief for Nigerians as banks confirm receiving enough cash, load ATMs

    The Central Bank of Nigeria has released more old notes to Deposit Money Banks as the apex bank steps up efforts to flood the economy with more cash after a prolonged cash crunch that has made life difficult for millions of Nigerians and residents.

    TheNewsGuru.com, (TNG) recalls the apex bank had last Thursday begun the release of billions of naira to DMBs. Bank officials said the CBN again released several billions of naira to lenders on Friday

    Reports several branches of banks opened over the weekend and dispensed cash to their customers via Automated Teller Machines and over-the-counter.

    Some of the banks had sent out emails to their customers notifying them that they would be open over the weekend for banking operations as ordered by the apex bank.

    Visits to banks’ branches in Lagos, Abuja, Ogun and other states revealed that most banks complied with the order of the CBN and attended to customers both in the banking hall and dispensed cash via ATM.

    Most of the banks’ branches along the Oshodi-Apapa Expressway and Gbagada area of Lagos opened on Saturday and Sunday and subsequently dispensing cash to their customers.

    The Access Bank branch at Sadiku Bus stop along the Oshodi-Apapa Expressway dispensed cash via its ATMS.

    The United Bank for Africa branch at Oshodi, close to the expressway dispensed cash both in the banking hall and at its ATMs. Customers were able to get N20,000 over-the-counter.

    The Access Bank branch next to it allowed its customers to get N20,000 while holders of other banks’’ ATMs got N5,000 only.

    Fidelity Bank branch also at Oshodi expressway paid N20,000 inside the banking hall. Of its three ATMs, only one was dispensing, paying other banks’ customers N5,000 and its customers N20,000.

    Meanwhile, it was not observe any of the banks dispensing crispy naira notes and customers didn’t care as long as they got the cash.

    A taxi driver, who identified himself as Baba Taju, said the kind of naira notes didn’t matter as long as he got some to spend.

    “You think that’s important now? What did we do when we couldn’t get any cash? Please any cash is welcome as long as I can spend it,” he said.

    Also, customers in the Federal Capital Territory continued to receive naira notes on Sunday.

    Some crowds of customers were seen at banks’ ATM galleries while others tried to perform over-the-counter transactions.

    Along the airport road, only Guaranty Trust Bank opened for physical operations, Stanbic IBTC loaded its ATMS with cash while Zenith Bank didn’t open for business.

    It was observed that the old N1,000 notes distributed were not crisp ones as officials separated mutilated notes before giving them to customers.

    In Ogun State, findings by our correspondent at Zenith Bank, PremiumTrust Bank, GTB, Unity Bank and Access Bank branches in Redemption Camp along the Lagos-Ibadan Expressway indicated that all the ATMs were fully loaded with cash

    It was observed that there were no long queues and after the Sunday service, bank customers were allowed to walk in and carry out their normal transactions.

    Also, both old and new naira notes were dispensed.

    Along the Ojodu-Berger axis of Lagos State, our correspondent visited six banks. The banks were Union Bank Plc, Ecobank, Access Bank, GTB, Zenith Bank, and First Bank. All six banks, apart from Guaranty Trust Bank did not open their banking halls to customers. ATMs were also not loaded.

    Source: PUNCH