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  • CBN issues Dec. 1, ultimatum against banks, ATM delays

    CBN issues Dec. 1, ultimatum against banks, ATM delays

    The Central Bank of Nigeria (CBN) on Friday advised bank customers to report any difficulties withdrawing cash from bank branches or ATMs to the apex bank from December 1.

    CBN Governor, Olayemi Cardoso, said this during the 2024 annual bankers dinner in Lagos organised by the Chattered Institute of Bankers of Nigeria (CIBN)

    He urged customers to make reports through designated phone numbers and email addresses for their respective states.

    Cardoso, who was coffered fellowship of the CIBN, said the guidelines would be distributed widely to raise public awareness.

    He called for full regulatory compliance by all stakeholders, including Mobile Money Operators and PoS Agents, to promote digital transaction channels and improve service delivery.

    “We also recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.

    “To address this, we are conducting spot checks across Deposit Money Banks (DMBs) and will impose penalties on underperforming institutions.

    “Effective December 1, 2024, customers are encouraged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.

    “I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties,” he said.

    According to him, the CBN will continue to maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.

    The CBN governor said the focus was to ensure seamless cash flow for Nigerians while fostering trust and stability in the financial system.

    He explained the Payment System Vision initiative for 2025 to further enhance confidence in the nation’s payment system.

    He assured that payment gateways in settling financial transactions will become better in 2025 as delays will be addressed.

    Cardoso said that trust was fundamental to fostering digital transactions, and CBN must take every necessary step to preserve that trust in payment systems.

    He said delays often disproportionately affect vulnerable segments of the population, adding that CBN would apply penalties on non-compliant institutions to safeguard consumer trust and ensure swift redress mechanisms.

    He said in 2025, CBN would prioritize initiatives including implementing open banking framework, advancing contactless payment systems, and expanding its regulatory sandbox.

    “Additionally, we will issue revised guidelines for agency banking and continue to strengthen electronic payment channels”.

    He also disclosed that Nigeria would exit the grey list on the Financial Action Task Force (FATF) by Q2 of 2025 while reeling out enforcement plans against money laundering, cybercrime, fraud, corruption, among others.

    Prof. Pius Deji Olanrewaju, President/Chairman of  the Chartered Institute of Bankers of Nigeria (CIBN), said that 2024 had been an eventful year for the banking industry and the economy.

    He said various policies and regulations of the apex bank and the federal government had begun to yield fruit.

    “For example, the Nigerian economy continues to be more resilient and agile as shown in the steady growth from 2.98 per cent in Q1 to 3.19 per cent in Q2 and now 3.46 per cent in Q3 of 2024.

    “Likewise, the Nigerian banking industry has also shown resilience this year despite the macroeconomic pressures such as rising inflation, and exchange rate fluctuations, amongst others.

    “The bank recapitalization exercise also attests to the fact that we are well on our way towards not only strengthening the financial sector but also supporting a $1 trillion economy envisaged by 2030,” he said.

    Also, Dr Ibrahim Stevens, Governor of the Central Bank in Sierra Leone praised efforts of the CIBN and Nigeria’s apex bank yielding positive fruits in Africa and globally.

    He called for collaboration towards building a sound financial eco system.

  • CBN presents reason for worsening inflation in Nigeria

    CBN presents reason for worsening inflation in Nigeria

    The Central Bank of Nigeria (CBN), says rising food prices is partly responsible for worsening headline inflation in the country.

    Mr Yemi Cardoso, the Governor of  CBN, said this on Tuesday in Abuja, while presenting the communique from the 298th meeting of the apex bank’s Monetary Policy Committee (MPC).

    According to Cardoso, the MPC meeting held on the backdrop of renewed inflationary pressures, as the headline, food and core measures rose year-on-year in October.

    He said that the Committee was particularly concerned that all three measures also inched up on a month-on-month basis.

    He said that it suggested the persistence of price pressures, with attendant adverse impacts on income and welfare of citizens.

    ”Members, therefore, agreed unanimously to remain focused in addressing price developments.

    “Food prices remain a key contributor to the uptick, members commended the efforts of the Federal Government for the improved security, especially in the North-East of the country, which would likely improve food production ” he said.

    The CBN governor said that rising energy cost also played a role in the general price level due to its impact on factors of production.

    “The recent increase in the price of Premium Motor Spirit (PMS) has also impacted the cost of production and distribution of food items and manufactured goods.

    “The committee is optimistic that the full deregulation of the downstream sub-sector of the petroleum industry will eliminate scarcity and stabilise price levels in the short to medium term.

    “Members, thus, reiterated the need to strongly forge ahead with the deepening collaboration between the monetary and fiscal authorities.

    “This is to ensure the achievement of our synchronised objectives of price stability and sustainable growth,” Cardoso said.

    He, however, said that there was an improvement in the external sector, reflected by the increase in the current account surplus, enhanced remittance and capital inflows. He said that they had impacted the external reserves positively.

    “This, therefore, suggests that key policy measures by both thmonetary and fiscal authorities are yielding the desired outcomes.

    ”Members, however, expressed concern over persisting exchange rate pressure, reflecting continued high demand in the market.

    ”Consequently, the MPC urged the apex bank to explore measures to boost market liquidity,” he said.

    The MPC continued its inflation targeting measure by further hiking the Monetary Policy Rate (MPR), which is the baseline interest rate. It, however, retained all other monetary policy parameters.

    The committee raised the MPR by 25 basis points to 27.50 per cent from 27.25 per cent, and retained the asymmetric corridor around the MPR at +500/-100 basis points.

    It also retained the Cash Reserve Ratio (CRR) of Deposit Money Banks at 50.00 per cent and Merchant Banks at 16 per cent, and retained the Liquidity Ratio at 30.00 per cent.

  • CPPE raises concern over CBN’s interest rate hike

    CPPE raises concern over CBN’s interest rate hike

    The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the Central Bank of Nigeria’s (CBN) sustained tightening of the Monetary Policy Rate (MPR), now at 27.50 per cent.

    Dr Muda Yusuf, Chief Executive Officer, CPPE, stated in Lagos on Tuesday that the continued rate hikes by the Monetary Policy Committee (MPC) could further stifle economic growth.

    The MPC of the CBN, during its 298th meeting, further raised the country’s interest rate to 27.50 per cent from 27.25 per cent.

    It, however, retained the Cash Reserved Ratio (CRR) at 50 per cent for Deposit Money Banks and 16 per cent for merchant banks.

    The committee also retained the Liquidity Ratio at 30 per cent, and also the Assymetric Corridor at +500/-100 basis points around the MPR.

    “It is troubling that despite the declining growth performance of many critical sectors of the economy as evidenced in the third quarter GDP report, the MPC still continued its tightening stance.

    “The GDP sectoral performance report also revealed a glaring disconnect between the financial services sector and the real economy,” he said.

    He said that the financial services sector recorded a growth of 32 per cent while agriculture and manufacturing grew by 1.14 per cent and 0.92 per cent.

    Yusuf said, “This disposition will deepen this distortions. Meanwhile strategic economic sectors such as agriculture, manufacturing and real estate recorded declines in growth in the third quarter.

    “Air transport and textile remained in recession. These sectors need monetary and fiscal support, not a further tightening of monetary conditions.

    The financial expert called on CBN to increase support for development finance institutions to address financing challenges caused by the sustained tight monetary policy regime.

  • CBN Governor admits Nigerian banks facing pressure

    CBN Governor admits Nigerian banks facing pressure

    The Central Bank of Nigeria (CBN) has admitted that Nigeria’s Deposit Money Banks (DMBs) are faced with both external and internal pressures but that they are “satisfactorily resilient” amid the pressures.

    Mr Yemi Cardoso, the Governor of the CBN, said this on Tuesday in Abuja while presenting a communiqué issued at the end of the 298th meeting of the apex bank’s Monetary Policy Committee (MPC).

    According to Cardoso, members of the MPC noted with satisfaction the continued resilience and stability of the banking system in spite of significant exogenous and endogenous headwinds.

    “Key financial soundness indicators such as the Capital Adequacy Ratio (CAR), Non-Performing Loan ratio (NPL), and Liquidity Ratio (LR), amongst others, remain strong,” he said.

    He, however, said that the CBN would maintain its close surveillance on the banking system to sustain compliance with regulatory thresholds and continued health of the industry.

    He said that the MPC acknowledged the efforts of the CBN in deepening financial inclusion towards improving the transmission mechanism of monetary policy to enhance policy effectiveness.

    Cardoso said that the MPC members were focused on the optimal policy choice to address the uptrend in price development, stabilise the exchange rate, and anchor inflation expectations appropriately.

    According to him, data from the National Bureau of Statistics (NBS) showed that headline inflation
    (year-on-year) rose to 33.88 per cent in October, from 32.70 per cent in September.

    “On a month-on-month basis, it also rose to 2.64 per cent in October, from 2.52 per cent in the previous month. Both the food and core components contributed to the continued rise in headline inflation.

    ”Food inflation rose further to 39.16 per cent in October, from 37.77 per cent in September, while core inflation also rose to 28.37 per cent in October, from 27.43 per cent in September.

    “The MPC, however, noted the moderation in the prices of farm produce and commended the efforts of the Federal Government in driving increased productivity in the agricultural sector,” he said.

    He said that the recovery of output growth was sustained, with real Gross Domestic Product (GDP) (year-on-year) growing by 3.46 per cent in the third quarter of 2024.

    “The growth is driven by both the oil and non-oil sectors, with a notable contribution from the services sector. The non-oil sector grew by 3.37 per cent in the third quarter compared with 2.80 per cent in the second quarter.

    “The oil sector grew by 5.17 per cent (year-on-year), compared with 10.15 per cent in the preceding quarter ” he said.

    He said that the external reserves rose marginally to 40.88 billion dollars as at Nov. 21 from 40.06 billion dollars at the end of October. According to Cardoso, the external reserves are available to finance 17 months of imports.

    CBN continues monetary policy tightening, raises interest rate by 25 basis points

    Meanwhile, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has further raised interest rate by 25 basis points to 27.50 per cent from 27.25 per cent.

    The Governor of the CBN and Chairman of the MPC, Yemi Cardoso, announced the raise on Tuesday in Abuja, while presenting a communiqué after the 298th meeting of the committee.

    Cardoso, however, announced that the committee also decided to hold all other parameters constant.

    The MPC, thus, retained the Cash Reserved Ratio (CRR) at 50 per cent for Deposit Money Banks (DMBs) and 16 per cent for merchant banks, retained the Liquidity Ratio at 30 per cent, and also retained the Assymetric Corridor at +500/-100 basis points around the MPR.

    Cardoso said that the decisions were unanimously adopted by all 12 members of the MPC who were present at the meeting.

    Tuesday’s decision is the sixth consecutive tightening of the MPR since Cardoso assumed office as CBN governor.

    The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points from 18.75 per cent to 22.75 per cent in February.

    In March, the committee, again, increased the MPR by 200 basis points to 24.75 per cent, followed by subsequent hikes to 26.25 in May, 26.75 per cent in July, and 27.25 basis points in September.

    Cardoso has, thus, raised the MPR by 875 basis points since he assumed office.

    These decisions are aimed at combating inflation, stabilising the economy, and promoting economic growth.

  • CBN continues monetary policy tightening, raises interest rate

    CBN continues monetary policy tightening, raises interest rate

    The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has further raised interest rate by 25 basis points to 27.50 per cent from 27.25 per cent.

    The Governor of the CBN and Chairman of the MPC, Yemi Cardoso, announced the raise on Tuesday in Abuja, while presenting a communiqué after the 298th meeting of the committee.

    Cardoso, however, announced that the committee also decided to hold all other parameters constant.

    The MPC, thus, retained the Cash Reserved Ratio (CRR) at 50 per cent for Deposit Money Banks (DMBs) and 16 per cent for merchant banks, retained the Liquidity Ratio at 30 per cent, and also retained the Assymetric Corridor at +500/-100 basis points around the MPR.

    Cardoso said that the decisions were unanimously adopted by all 12 members of the MPC who were present at the meeting.

    The News Agency of Nigeria (NAN) reports that Tuesday’s decision is the sixth consecutive tightening of the MPR since Cardoso assumed office as CBN governor.

    The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points from 18.75 per cent to 22.75 per cent in February.

    In March, the committee, again, increased the MPR by 200 basis points to 24.75 per cent, followed by subsequent hikes to 26.25 in May, 26.75 per cent in July, and 27.25 basis points in September.

    Cardoso has, thus, raised the MPR by 875 basis points since he assumed office.

    These decisions are aimed at combating inflation, stabilising the economy, and promoting economic growth.

  • CBN likely to raise interest rates again – Uwaleke

    CBN likely to raise interest rates again – Uwaleke

    A Financial Expert, Prof. Uche Uwaleke, says the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is likely to raise interest rates again.

    Uwaleke, the Director, Institute of Capital Market at the Nasarawa State University, is also the President, Capital Market Academics of Nigeria.

    He said this in an interview on Sunday in Abuja, against the backdrop of the 298th MPC meeting scheduled to hold on Monday and Tuesday.

    According to him, for the first time in many months, both core and food inflation went up last month.

    “Ditto for rural and urban, year-on-year and month-on-month inflation, further widening the negative real interest rate.

    “The Fx market is still experiencing pressure going by the forward rates of the dollar. FAAC just shared more than N1.4 trillion for October, higher than the figures for previous months,” he said.

    He said that there was also the approaching festivities’ period to consider often characterised by higher prices of goods and services.

    “Against this backdrop, I will not be surprised if the MPC further jerks up the MPR by at least 50 basis points,” he said.

    He, however, advised the committee to retain its prevailing monetary policy rates to moderate investment costs.

    “Nevertheless, all considered, including the rising cost of funds for businesses, I would advise a hold position,” Uwaleke said.

    The MPC raised the Monetary Policy Rate (MPR), which is the baseline interest rate, by 50 basis points to 27.25 per cent from 26.75 per cent in its 297th meeting in September

    That decision marked the fifth consecutive hike of the rates since Yemi Cardoso took charge as CBN governor and chairman of the MPC.

    “The first decision under Cardoso was an aggressive hike in the MPR by 400 basis points, from 18.75 per cent to 22.75 per cent in February.

    In March, the committee, again increased the MPR by 200 basis points to 24 75 per cent, followed by subsequent hikes to 26.25 in May, and 26.75 per cent in July.

    Cardoso has thus, increased the MPR by 850 basis points since the commencement of his tenure.

    The aim, according to him, is to aggressively address Nigeria’s high inflation, particularly core and food inflation.

  • CBN alerts Nigerians to fake foreign fund transfers

    CBN alerts Nigerians to fake foreign fund transfers

    The Central Bank of Nigeria (CBN) has advised members of the public to be cautious of fake SWIFT Messages on foreign exchange remittances to their Nigerian bank accounts.

    The Acting Director, Corporate Communications Department of the apex bank, Hakama Sidi-Ali, gave the advice in a statement on Tuesday in Abuja.

    Sidi-Ali said that the CBN had been inundated with claims by some stakeholders about the conclusion of foreign currency transfer to their Nigeria bank accounts.

    According to her, stakeholders like private entities, individuals, law firms, and government agencies complained that foreign currency funds allegedly transferred to them by foreign entities have yet to be credited to their accounts with Nigerian banks.

    ”In some instances, the claimants alleged that the funds were withheld by either the beneficiary bank in Nigeria or the CBN and requested the assistance towards releasing the funds to them.

    “The requests are usually supported with fake documents such as SWIFT MT103, SWIFT
    Ack copy, etc.

    “It has become imperative to state that the SWIFT ack copy and SWIFT MT103 that these claimants usually attach as evidence of remittance to beneficiary banks in Nigeria are not reliable,” she said.

    The director said that the SWIFT messages were always not traceable on the SWIFT platform, and the funds had not been received to enable their application to the beneficiary’s account.

    “In a situation where a fund transfer beneficiary’s receiving bank claims non-receipt of funds remitted by the foreign entity, the standard practice is for the sending customer to contact the sending bank.

    “The purpose is for the sending bank to send a tracer to trace where the fund is hanging and recall it.

    “For the avoidance of doubt, we wish to state emphatically that the CBN neither provides
    correspondent banking services for Nigerian banks in foreign payments nor maintains accounts for private business entities.

    “Consequently, petitioners’ claim that the alleged expected inflows for onward credit into the accounts of private business entities are trapped in the CBN is not only spurious but deceitful,” she said.

    She urged the general public to be careful with such unauthentic SWIFT messages and documents containing spurious claims of non-application of substantial foreign currency funds allegedly transferred into the beneficiary’s account.

    She warned that the CBN would not hesitate to report any bank customer making unsubstantiated and illegitimate claims to law enforcement agencies for
    investigation and prosecution.

    SWIFT messages are messages sent through the Society for Worldwide Interbank Financial Telecommunication network to facilitate financial transactions between banks and financial institutions.

  • BREAKING: Despite hardship, CBN raises Nigeria Customs Duty Exchange Rate to N1658.87/$

    BREAKING: Despite hardship, CBN raises Nigeria Customs Duty Exchange Rate to N1658.87/$

    Despite the hardship ravaging Nigeria , the Central Bank of Nigeria (CBN) has adjusted the Customs duty exchange rate for clearing goods at the nation’s ports to N1,658.87 per dollar.

     

    This change, effective Monday, November 18, reflects a 0.37% increase from the previous week’s rate of N1,652.63 per dollar, impacting importers filing Form M applications.

    Customs duty, which is the tax levied on imported goods, is paid through commercial banks to the Nigeria Customs Service on behalf of the federal government.

    Form M, a mandatory document for importers, is required for all goods entering Nigeria.

     

    The increasing Customs exchange rate poses significant challenges for Nigeria’s import-dependent economy.

    According to the Nigerian Port Consultative Council (NPCC), the first half of 2024 witnessed a 4.3% decline in the number of ships arriving at the country’s seaports.

    The Centre for the Promotion of Private Enterprise (CPPE) has called on the Central Bank of Nigeria (CBN) to reduce the Customs duty exchange rate to N1,000 per dollar to alleviate economic hardships in the country.

    The Chief Executive Officer of CPPE, Dr. Muda Yusuf, emphasized the need for a major policy adjustment to complement existing measures aimed at addressing Nigeria’s ongoing cost-of-living crisis.

    According to the economist, pegging the rate at N1,000 per dollar would help stabilize market prices and provide relief to businesses and consumers.

  • CBN sends strong warning to commercial banks over Naira hawking

    CBN sends strong warning to commercial banks over Naira hawking

    The Central Bank of Nigeria (CBN) says it will heavily penalise Deposit Money Banks (DMBs) found  supporting the hawking of Naira notes.

    Mr Solaja Olayemi, Acting Director, Currency Operations Department, CBN, said this in a memo to DMBs on Friday in Abuja.

    Olayemi said that the CBN would engage in “mystery shopping” exercise and periodic “spot checks” on cash distribution and disbursement activities of DMBs to ascertain the source of such Naira notes.

    He said that the initiatives were introduced to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of Naira cash, thereby discouraging abuse of the Naira.

    He said that the initiatives would also ensure that DMBs support efficient and responsible cash disbursement to the public.

    “For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalised 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.

    “Every subsequent offence will be charged an incremental penalty of five per cent. DMBs found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions,” he said.

    He urged DMBs to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets, as the yuletide season approached, with an anticipated increase in cash demand,

    “To enhance public access to cash, we encourage banks to prioritise cash distribution through Automated Teller Machines (ATMs).

    “During this season, the CBN, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent Naira abuse,” he said.

  • Emefiele’s trial: Witness reveals CBN board did not recommend Naira redesign

    Emefiele’s trial: Witness reveals CBN board did not recommend Naira redesign

    A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Obiorah, on Thursday said the board of the apex bank never recommended the 2022 Naira redesign to former President Muhammadu Buhari.

    Obiorah said this while testifying virtually before the FCT High Court at the resumed hearing  in the ongoing trial of the suspended governor of the CBN, Godwin Emefiele.

    Emefiele is standing trial before Justice Maryanne Anenih, on  four-count charge bordering on disobedience to the direction of law and illegal act causing injury to the public.

    Emefiele is being prosecuted by the Economic and Financial Crimes Commission (EFCC), on behalf of the Federal Government, in the charge, marked FCT/HC/CR/264/2024.

    He however pleaded not guilty to the charge .

    Led in evidence-in-chief by the prosecution counsel, Mr Rotimi Oyedepo SAN, Obiorah, said that he ounce served as Special Adviser to Emefiele on Economic Matters.

    Obiorah, who later became deputy governor, said the CBN board first heard of the Naira redesign policy on Dec. 15, 2022.

    “To the best of my recollection, the first day this policy (Naira redesign) was discussed at the board meeting was mid December, 2022. I think it was around Dec. 15, 2022.

    “The governor (Emefiele) invited the deputy governor, Operations and Director, Currency Operations to present that same memo that the Committee of Governors (COG) saw in October. He also informed the board of the President’s approval.

    “I do not recollect any instance where the board made recommendation for Nairan redesign to the President. The board did not recommend the  Naira redesign.”

    Obiorah, testified as the fifth prosecution witness (PW5). He earlier told the court that Emefiele informed the four CBN deputy governors of the Naira redesign policy at an event in Lagos on Oct. 25, 2022, adding that they advised him against announcing the policy at the event.

    “On that day, we were in Lagos to commemorate the first year anniversary of the digital currency, E-Naira. During the break between the first two sessions of the event, the governor (Emefiele) called the four deputy governors and informed us of plans to redesign the currency.

    “He was contemplating to announce it that day at the event. My personal reaction was that the event may not be the appropriate place. That was the first time I became aware of the plan.

    “Secondly, my comment was that we would need time to study the policy and make inputs,” the witness told the court.

    According to Obiorah, Emefiele told the four deputy governors tha the reason behind the secrecy of the redesign policy was to ensure its effective implementation.

    He said that on Oct. 26, 2022, the defendant the deputy governor in charge of operations, Mr Ade Shonubi, circulated and presented a memo for Naira redesign,.

    “The deputy governor, Operations, presented the memo to the COG and it was deliberated on. During the discussion, the governor mentioned that he got the approval of the President for the policy.

    “After the COG meeting, the governor and two deputy governors joined a news conference to announce the policy to the public. All this happened on Oct. 26, 2022,” he told the court.

    Under cross examination by counsel for Emefiele, Olalekan Ojo SAN, the witness confirmed that he had previously worked as technical adviser to former President Good luck Jonathan.

    He said at its Dec. 15, 2022 meeting, the CBN board ratified the decision of the COG on Naira redesign policy, saying , “this ratification is in respect of the redesigned Naira already in circulation.”

    The PW5 also said he was aware of instances of presidential approval for disbursement of funds to Chad, Niger Republic and the military, which the CBN complied with.

    “Such (presidential) request would come to the governor. He would usually let the committee (COG) know and it would be implemented before the board get to know.”

    He added that when he was invited by the EFCC, he was never shown and documents from former President Buhari or any officials from the presidency complaining about the redesigned Naira notes already in circulation.

    He confirmed that one of the reasons for currency redesign was to combat currency trafficking and hoarding. After his evidence, Justice Anenih adjourned further hearing until Dec. 4.