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  • NOVA Bank commences operations as a national commercial bank

    NOVA Bank commences operations as a national commercial bank

    NOVA Bank, formerly known as NOVA Merchant Bank, has officially commenced operations as a National Commercial Bank, as the bank opened its first commercial banking branch at 18, Kofo Abayomi Street, Victoria Island.

    This follows the Central Bank if Nigeria’s (CBN) approval of the final license for the Bank to commence operations as a National Commercial Bank.

    Apart from the newly opened branch in VI, the Bank announced that additional branches in Lagos, Abuja, Port Harcourt, and Kano, will follow shortly.

    Speaking on the commencement of its commercial banking operations, Chairman and Founder of NOVA Bank, Mr. Phillips Oduoza, emphasised the Bank’s unwavering commitment to customer focus and delivering exceptional service.

    He also seized the opportunity to introduce the innovative “PHYGITAL” model, which according to him, is a trademark of NOVA.

    He said, “We are pleased to continue our tradition of excellence established as a merchant bank and further extend the banking experience to the retail end of the market. As we expand our services, we remain dedicated to delivering an unparalleled banking experience that seamlessly integrates the physical and digital realms.

    “Our trademarked PHYGITAL experience combines a select number of strategically located physical branches with high-tech, seamless digital banking capabilities, ensuring that our customers receive the best of both worlds. This approach allows us to provide personalised, in-person service where it is most needed, while also offering the convenience and efficiency of cutting-edge digital solutions.”

    The Managing Director/CEO of NOVA Bank, Wale Oyedeji, said, “For over half a decade, NOVA has been instrumental to the success of leading corporates and high-net-worth individuals, delivering tailored solutions to meet the unique needs of their businesses. As we evolve to serve a broader customer base, we remain committed to delivering innovative services, building on our legacy as a leading Merchant Bank.

    “Through disruptive seamless digital products and services, we are poised to deepen financial inclusion, provide convenient and secure banking solutions, and elevate the SME market as a key economic driver”.

    The Bank’s Group Head, Retail and Digital Banking, Mrs. Esther Adino, highlighted the innovative financial solutions that NOVA Bank offers, adding, “At NOVA Bank, we provide a comprehensive suite of banking services tailored to meet the diverse needs of individuals, SMEs, and large corporations. Our card solutions ensure convenience and security for everyday transactions. Our state-of-the-art mobile app empowers customers to manage their accounts, transfer funds, pay bills, and do much more, all from the convenience of their mobile devices. Additionally, we offer quick and efficient POS solutions that facilitate seamless transactions for SMEs and large businesses, along with flexible account options designed to cater to the varied financial needs of our customers.”

    Since its inception in 2018, NOVA Bank has firmly established its presence in Nigeria’s banking landscape and beyond. Despite its relatively young presence in the industry, spanning just over five years, NOVA has consistently surpassed market expectations, posting profits and strengthening its position as an investment grade leading financial institution both domestically and globally.

    The issuance of the national commercial banking license underscores CBN’s confidence in the strength of the Bank and, reflecting its robust financial health, good governance, and commitment to excellence.

  • CBN sends strong message to banks rejecting mutilated naira notes

    CBN sends strong message to banks rejecting mutilated naira notes

    The Central Bank of Nigeria (CBN) on Thursday warned sternly Deposit Money Banks (DMBs) rejecting dirty or mutilated Naira notes.

    In a statement signed by the acting director of the currency operations department, Solaja Olayemi, the apex bank emphasized that strict penalties will be enforced against banks that fail to accept these notes from the public.

    Olayemi said that a lot of displeased consumers have lodged numerous complaints about certain banks’ practices of refusing to accept worn and torn Naira notes.

    “The Central Bank of Nigeria has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks,” Olayemi stated.

    He added that the issue not only inconveniences the public but also contravenes the guidelines set forth by the CBN.

    The CBN reminded banks of the circular issued on July 2, 2019, coded COD/DIR/GEN/CIR/01/006, which outlines the penalties for rejecting Naira banknotes.

    “It has become imperative to remind DMBs that the CBN circular is still enforceable and binding on erring DMBs,” the statement read.

  • Ex-CBN Director proffers solution for stability of forex

    Ex-CBN Director proffers solution for stability of forex

    A former Director of Research Department, Central Bank of Nigeria (CBN), Dr Titus Okurounmu, has urged the Federal Government to make concerted efforts to increase domestic production to check foreign exchange volatility.

    Okurounmu, who gave the advice on Wednesday in Ota, Ogun, emphasised the need to increase the country’s domestic production to address the continuous rise in inflation rate and check foreign exchange volatility.

    According to him, if the country does not have anything to export, the exchange rate will continue to depreciate as there is no magic toward foreign exchange stability.

    “There is urgent need to increase domestic production, especially food production because the country has regular and constant rain to support farming system.

    “Also, the Federal Government needs to create critical infrastructure like stable power supply, good road network, amongst others.

    “That would help the manufacturing sector to produce at optimum level for both local consumption and export purposes,” he said.

    Okurounmu, therefore, called on the governors of the 36 states to use their monthly allocations on capital projects and increase domestic production in their various states.

    He also called on all tiers of government to fight corruption, saying that this had become the bane militating against economic growth.

  • Reps probe CBN’s N1.12trn anchor borrowers scheme, NIRSAL’s N215b loan

    Reps probe CBN’s N1.12trn anchor borrowers scheme, NIRSAL’s N215b loan

    The House of Representatives has ordered probes into the N1.12 trillion anchor borrowers scheme, an initiative of the Federal Government’s interventions and agricultural funding through the Central Bank of Nigeria (CBN).

    Also included in the probe is the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), the Bank of Industry (BoI) and other agencies.

    The resolution followed the adoption of a motion by Rep. Chike Okafor (APC-Imo) on the floor of the House in Abuja on Tuesday.

    Presenting his motion, Okafor linked the growing food scarcity and malnutrition in Nigeria to the alleged mismanagement of agricultural funds intended for agricultural development in the country.

    He said the Federal Government had expended N8 trillion in 8 years on various schemes and interventions in the last eight years with the view of making food available for millions of Nigerians.

    He added that the alleged mismanagement, misapplication of funds and abuse of the programmes had left Nigeria with the twin challenges of food scarcity and malnutrition.

    Okafor said that funds advanced to end users of the various Federal Government interventions had also been allegedly misused, misapplied and channelled to non-farming and non-agricultural purposes.

    This, he said was responsible for the current acute scarcity of food in the country.

    Adopting the motion, the House mandated the Committee on Nutrition and Food Security as well as the Committee on Agricultural Production and Services; Agricultural Colleges and Institutions and Finance, to probe

    The Committees were mandated to thoroughly investigate CBN’s alleged mismanagement of the Anchor Borrowers Program (ABP) for which ₦1.12 trillion was to be disbursed to 4.67 million farmers.

    The farmers who were said to be involved in either maize, rice or wheat farming through 563 anchors.

    The committees are also to look into NIRSAL’s disbursement of ₦215,066,980,274.52, to facilitate agriculture and agribusinesses.

    The house gave the committees four weeks to report back to the House.

    The house also mandated the  committees to equally assess how the Bank of Industry (BOI) disbursed N3 billion to 22,120 small holder farmers through the Agriculture Value chain financing (AVCF) Programme.

    The committee is to also investigate the handling of the N5 billion loan facility to the Bank of Agriculture (BOA) for livestock farmers across the country.

    This will anls include the management of the National Agricultural Development N1.6 billion Recovery Fund for the Ginger Blight Epidemics Central Taskforce (GBECT).

    This is for the control of Blight disease in Ginger, among other interventions.

  • CBN to tame inflation via conventional methods-Cardoso

    CBN to tame inflation via conventional methods-Cardoso

    The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the apex bank is determined to tame inflation through conventional methods.

    The CBN governor stated this during an interview with Bloomberg in London while sharing key insights on the current state of the market, mainly focusing on the stability of the naira and inflation rates.

    Cardoso noted a deceleration in the month-on-month inflation rates, highlighting it as a positive development.

    He also assured that the Monetary Policy Committee (MPC) members remained vigilant in monitoring inflation trends and ensuring a moderation of inflation numbers.

    “MPC members will continue to monitor the trajectory and are determined to ensure that they put inflation under control,” a statement from the bank’s communicative unit quoted Cardoso as saying.

    While highlighting a period of stability following previous volatility in the foreign exchange market, he expressed optimism about the recent improvements in liquidity and return of confidence to the market.

    He attributed the new development to increased liquidity and a calmer approach from market participants on both the buy and sell sides.

    “In the past, people were panicking and front-loading their requests,” he explained, stressing that “Now, a lot of that has calmed down. There’s no inclination to do that because liquidity has returned to the market.”

    Cardoso also highlighted the significant achievement of merging disparate exchange rates into a more unified system.

    “We had two different rates; right now, we more or less have one rate. And we believe that this is good. It allows companies to plan,” he stated, emphasising the importance of a predictable exchange rate for economic planning and investment.

    Furthermore, he expressed confidence in the current market dynamics, where willing buyers and sellers operate freely, noting that it had contributed to the stability of the Naira. He, however, stressed the importance of continuous observation and management to ensure the market benefits all participants.

    Nigeria’s annual inflation rose to a 28-year high of 33.95% in May 2024, but recent data from the National Bureau of Statistics reveals that the month-on-month inflation rate had slowed for the third consecutive month, validating the effectiveness of the Central Bank of Nigeria’s monetary policy tightening measures.

     

  • CBN issues IMTOs Naira access to help boost remittances

    CBN issues IMTOs Naira access to help boost remittances

    The Central Bank of Nigeria (CBN), on Monday, issued new measures it is currently putting in place, to boost naira liquidity and raise diaspora remittances.

    According to its latest circular, the apex bank said eligible International Money Transfer Operators (IMTOs), will now have access to naira liquidity through the bank’s window. This initiative is designed to widen access to local currency liquidity, ensuring smoother and more efficient settlement processes for remittances, the CBN said.

    Signed by W. J. Kanya, acting director of the trade and exchange department at the CBN, said transactions executed before noon on a trading date will be settled on the same day.

    According to the circular, all participants are required to submit daily regulatory returns to the CBN. These returns must include all relevant information on the sources of funds.

    The key participants in the segment include: IMTOs, authorised dealer banks, and the CBN.

    Under the new guidelines, IMTO operators will be able to directly access the CBN window, or do so via their Authorised Dealer Banks (ADBs) to execute foreign exchange transactions in the market. The circular outlines specific compliance measures to ensure the effective operation of the initiative.

    It also said pricing on the CBN portal will mirror the NAFEX traded rates, which are based on an acceptable market benchmark.

    The operation of the segment will follow the existing arrangements in place for authorised dealers involved with foreign portfolio investment in primary market securities auctions.

    The circular emphasised that these measures are effective immediately, highlighting the bank’s commitment to maintaining the smooth functioning of the foreign exchange market and improving formal remittance channels.

    The decision is expected to significantly improve the liquidity of local currency for diaspora remittances, thereby enhancing the overall efficiency and reliability of the foreign exchange market in the country.

    The CBN has focused on increasing remittances and naira liquidity.

    This is as in May 2024, the bank granted 14 IMTOs an approval-in-principle (AIP) in an effort to double foreign-currency remittance inflows through formal channels.

    “This will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX), augmenting price discovery to enable a market-driven fair value for the naira,” said Hakama Sidi Ali, CBN’s Acting Director of Corporate Communications, while announcing the new plan in a statement.

    The CBN Governor, Olayemi Cardoso, had recently disclosed the apex bank’s target to double remittance flows into Nigeria within a year, which he firmly believed was possible.

    He said, “We are wasting no time driving progress to remove any bottlenecks hindering flows through formal channels permanently. We have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with key stakeholders in the remittance industry.”

  • Emefiele exposed for printing another Naira: ‘Design approved by Buhari had QR code’

    Emefiele exposed for printing another Naira: ‘Design approved by Buhari had QR code’

    A former Central Bank of Nigeria, CBN, Director of Currency Operations, Ahmed Umar, has exposed the immediate past governor of the apex bank, Godwin Emefiele for printing his own design of the naira.

    Umar revealed this while giving evidence at the Federal Capital Territory, FCT, High Court sitting in Maitama.

    The former CBN director said the features in the design approved by former President Muhammadu Buhari was different from the one Emefiele ordered to be printed.

    Umar said, “The design approved by the President had a QR code, which the currency in circulation does not. The positioning of the portrait was on the right side, that printed by the CBN was on the left and the number scheme approved by the President is different from what the CBN produced.”

    The Economic and Financial Crimes Commission, EFCC, had on May 15, arraigned Emefiele on a four count charge before Justice Maryanne Anenih of the FCT High Court.

    Emefiele however denied the charge and was admitted to bail in the sum of N300 million.

  • CBN allays customers’ fears over safety of bank deposits

    CBN allays customers’ fears over safety of bank deposits

    The Central Bank of Nigeria (CBN) has again reassured the banking public of the safety of their deposits and the banking system’s resilience.

    The apex bank’s Acting Director of  Corporate Communications Department, Mrs Hakama Sidi-Ali, gave the assurance in a statement on Monday in Abuja.

    Sidi-Ali’s statement was a response to concern in some quarters about the stability of some Nigerian banks in the wake of Heritage Bank Plc’s license revocation.

    She faulted claims that the CBN was considering revoking the operating licences of Fidelity Bank, Polaris Bank, Wema Bank and Unity Bank.

    She also clarified that a circular issued by the Bank on January 10, 2024, notifying the public about the dissolution of the Boards of Union, Keystone, and Polaris Banks, was currently being circulated as though it was freshly issued.

    According to the director, Heritage Bank’s case was isolated

    “Allegations of further revocation of licences prior to the completion of CBN’s recapitalisation exercise are mere fabrications aimed at creating panic within the system,” she said.

    She said that bank customers, particularly those of Heritage Bank, needed not worry about the safety of their deposits, adding that the Nigeria Deposit Insurance Corporation (NDIC) had commenced payment to the bank’s insured depositors.

    She urged members of the public to continue their regular banking activities without fear, dismissing any false reports regarding the health of specific Deposit Money Banks.

    “The CBN, with its robust regulatory framework, is proactively ensuring the stability of Nigeria’s financial system, thereby guaranteeing the safety of depositors’ funds in all Nigerian financial institutions,” she said.

    Sidi-Ali reiterated the assurances of the CBN Governor, Olayemi Cardoso, that the recapitalisation of banks in Nigeria was intended to bolster the banking system and safeguard the sector against risks.

    She urged all stakeholders to cooperate in ensuring the success of the process, which she said would be for the overall growth of the Nigerian economy.

    “Without prejudice to the ongoing recapitalisation process, I want to restate that the Nigerian banking industry remains resilient. Key financial soundness indicators remain within current regulatory thresholds.

    “Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she said.

  • Clean up Emefiele’s mess thoroughly – Northern group urges CBN

    Clean up Emefiele’s mess thoroughly – Northern group urges CBN

    Northern Ethnic Youth Group Assembly (NEYGA) has urged the Governor, Central Bank of Nigeria (CBN), Yemi Cardoso, to thoroughly clean up its structure to rid the apex bank of influences of Godwin Emefiele-led tenure.

    NEYGA made the call in a statement by its Spokesman, Mallam Ibrahim Dan-Musa, on Monday in Abuja.

    Dan-Musa accused the former leadership of the apex bank of mismanaging funds and compromising the bank’s integrity, adding that Emefiele’s actions were detrimental to the country’s economy.

    He demanded that the current management should take action to hold whoever was involved accountable for their actions.

    According to the group, leaving any remnants of the previous leadership in place would frustrate the ongoing reforms at the CBN and hinder the country’s economic progress.

    They urged Nigerians to support the current management in their efforts to restore the CBN’s credibility and stability.

    “We must embrace reform now or face the consequences tomorrow.

    “We commend the special investigations committee led by Jim Obazee for uncovering the details of the mismanagement and demanded decisive action towards reform and accountability.

    “The CBN faces intense scrutiny over its handling of the country’s economy.

    “The current management has promised to implement reforms aimed at stabilising the economy and restoring public trust in the bank,” the group said.

    Dan-Musa said that NEYGA had passed a vote of confidence on the new management of the apex bank and a call to action to ensure that those responsible for the country’s economic woes were held accountable.

  • NASS told to investigate mass retrenchment of CBN workers

    NASS told to investigate mass retrenchment of CBN workers

    The Conference of Autochthonous Ethnic Communities Development Association (CONECDA), has urged the National Assembly to investigate the recent mass sack of some workers of the Central Bank of Nigeria (CBN).

    Mr. Paul Dekete, the North Central Coordinator of CONECDA Youth Wing, made the request in a statement on Sunday in Jos.

    Dekete, who faulted the manner in which the affected workers; largely directors, deputy and assistant directors, were dismissed, said that the process violated the bank’s established procedure.

    The coordinator also maintained that the move would grossly affect the operations of critical departments within the apex bank, adding that 16 departments were affected by the action.

    Dekete decried that the affected personnel were those with avalanche of experience and expertise in their various fields, needed to move the apex financial institution forward.

    ”This is why we are calling on the National Assembly to investigate the CBN to understand the rationale behind the mass sack of its staff and the criteria used.

    ”The National Assembly should ensure that CBN follows established procedures for staff reduction as laid out in its HR (Human Resource) manual and best practices worldwide.

    ”That the insensitive termination letters should be withdrawn and replaced with more appropriate documentation that reflects the employees’ work records.

    ”The National Assembly should ensure all the decisions are reviewed to ensure compliance with CBN HR policy and public service rules,” he said.

    Dekete also appealed to the lawmakers to ensure that employees, who were dismissed without proper justification, were reinstated.

    He said that the dismissed staff deserved fair compensation to mitigate the economic hardship caused by the management’s decision.