Tag: central bank of nigeria

SANCTION: CBN frowns at banks hoarding new naira notes

The Central Bank of Nigeria, CBN, has vowed to sanction any commercial bank found hoarding the new naira notes, saying it had produced enough for distribution to all the banks across the country.

The CBN Kano Branch Controller, Alhaji Umar Biu, made the remark during a sensitization programme on the new naira notes organised for traders at the Sabon Gari market in Kano on Thursday.

The sensitization programme was also extended to the popular Kwari Market, Wapa Bureau De Change Market, Kofar Wambam market and the famous Kurmi market in the Kano metropolis.

You have the right to report any bank found hoarding the new naira notes or refusing to collect your old naira notes before the 31st January 2023 deadline

He said the traders have the right to report any bank found either hoarding the new naira notes or charging customers before depositing their old naira notes.

“You have the right to report any bank found hoarding the new naira notes or refusing to collect your old naira notes before the 31st January 2023 deadline.

“No bank should refuse to collect the old naira notes until the deadline of 31st January 2023,” the branch controller said.

According to him, the apex bank has directed commercial banks to desist from payment on the counter as part of effort to check the favouritism of customers.

He maintained that there was no going back on the 31st January 2023 deadline adding that all the old naira notes would cease to be legal tender on that date.

Old naira notes (left) and new naira notes (right)

The CBN branch controller further called on the market men and women to report banks that were still loading the old naira notes on their Automatic Teller Machines.

He said the sensitisation was designed to enlighten them on the need to deposit the old notes before the deadline to avoid any loss.

The CBN boss advised all Nigerians to ensure that they deposit their old naira notes with them at their commercial banks, before the expiration of the January 31, 2023 deadline.

In his remarks, the chairman of Sabon Gari market traders, Alhaji Sule Kura, called on the apex bank to make the new naira notes available to commercial banks so as to reduce the hardship being encountered by customers.

He expressed great concern over the non-availability of the new naira notes in most of the commercial banks saying many people will lose their money if urgent steps were not taken to address the situation.

Most of the market leaders who spoke at the occasion called for the extension of the deadline.

January 19, 2023
Truck load full of rotten N1,000 notes found in North (VIDEO)

A broken down truck loaded with N1,000 notes has been spotted on social media and alleged to have emanated from North as people seen speak Hausa.

The development came as the Central Bank of Nigeria, CBN, began plans to redesign certain denominations of the naira notes from December 15, 2022.

According to people in the video, the broken-down truck is the third they had seen loaded with Nigerian currencies looking for where to offload them.

The video showed what seems to be naira notes, especially N1,000 denominations badly defaced, which those in the video claimed may have been kept in a place where they became damaged and now the owners are looking for where to exchange them.

TheNewsGuru.com (TNG) reports that the glut of the naira in the market has crashed the currency’s value, which traded at N900 to a dollar in the black market and N442 to a dollar.

The CBN appears set to implement the Naira change as banks begin compliance with its directive to get ready for a smooth transition to the new currency note.

Last weekend all the commercial banks opened shops for customers, a development which may have helped some depositors to begin the process of aligning their cash holdings with the expected withdrawal of old Naira notes in the weeks ahead.

Some banks are already reporting rising cash deposits though it was not yet clear the sources of those deposits.

There is also no sign of rush or banking hall surge as would have expected if the experience of 39 years ago when the last Naira change happened, was anything to go by.

According to bank officials, such surge may not happen given the new banking environment which is now heavy on cashless transaction. They expect more transactions to be happening on electronic channels as the process of implementing the currency redesign gathers momentum in the weeks ahead.

The bankers noted that they do not expect much challenge with the fears that criminals would besiege the banking halls with large volume of cash they had kept away due to the nature of the source of the money.

See video below:

https://youtu.be/c4d2AKFb4K4?t=28

November 9, 2022
Naira Redesign: CBN discloses where new notes will be printed

The Central Bank of Nigeria has noted that there is no plan to print the redesigned naira notes outside the country.

This was made known by the Central Bank of Nigeria (CBN) Board member on Thursday in Abuja.

According to CBN Governor, Godwin Emefiele, the N1000, N500 and N200 will be redesigned as part of measures to tackle counterfeits notes and some other vices in the country.

There were speculations flying around that the redesigned notes will be printed outside the country but the board member has now dismissed the story.

“All the new currency notes are printed in Nigeria by the Nigeria Security, Printing and Minting Company (NSPMC), so I do not envisage printing outside the country,” the Board member told pressmen in confidence.

He, however said that he has no idea of the cost for printing the new currencies for now. But he assured that the cost is “something that can be accommodated in view of the expected benefits of the re-designed notes”.

Making clarifications on the gap in communication between the CBN and the minister of finance on the decision to redesign some denominations of the naira, the CBN Board member insisted that “the CBN Governor did not take the decisions on currency redesign alone”.

According to the Board member, “at present, the Board of the CBN has not been inaugurated even though the Senate has confirmed the re-appointment of the members. Until the Board is inaugurated, it cannot sit”.

He went on to add that “in the interim, the President who is the Supervisor of the CBN, acts on behalf of the Board. This is why the Governor went directly to the President for approval of the redesign.

However, Nigeria’s president Muhammadu Buhari has backed the redesigning of the naira notes that will go into circulation from December 15th.

November 4, 2022
BREAKING: Central Bank of Nigeria to redesign Naira notes

The Central Bank of Nigeria (CBN) has disclosed plans to redesign some Naira notes.

TheNewsGuru.com (TNG) reports CBN Governor, Godwin Emefiele disclosed this at a special press briefing in Abuja on Wednesday.

The Naira notes to be redesigned are the 200, 500 and 1000 Naira notes.

According to Emefiele, the redesign will take effect from Thursday, December 15, 2022.

UPDATE || Return old Naira notes to CBN vault now – Emefiele tells Nigerians

October 26, 2022
Nigeria records N524.25bn fiscal deficit in one month

Federal Government of Nigeria has recorded N524.25 billion fiscal deficit in the month of May, just as it recorded N643.09 billion in April 2022.

The detail was contained in the Central Bank of Nigeria’s monthly economic report on fiscal sector development for the country.

“The disproportionate reduction in expenditure and revenue outcomes resulted in a contraction in the overall fiscal deficit, during the period,” said the report.

The report added, “Following the 14.0 per cent decline in government spending and 7.2 per cent fall in FGN retained revenue, the provisional fiscal deficit, at N524.25bn, was 18.5 per cent and 1.5 per cent below the level in April and the budget benchmark, respectively.”

The extant fiscal framework to pursue macroeconomic stability remains the anchor of government’s fiscal operations, income generation, and the expansion of fiscal space to boost infrastructural development, among other objectives are also part of it.

The federation and the Federal Government recorded shortfalls of 35.8 per cent and 7.2 per cent in May, 2022, relative to the respective monthly targets.

However, the overall fiscal deficit of the FGN contracted by 1.5 per cent, relative to the target, driven, largely, by a 14.0 per cent drop in aggregate expenditure.

Total public outstanding debt, at end March 2022, stood at N41.6tn or 18.8 per cent of GDP, and remained within the 40.0 per cent debt-GDP threshold.

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The report stated that, “Provisional federally collected revenue in May dropped due to lower non-oil receipts. At N1.02tn, federation revenue fell below the levels in April and the monthly budget by 22.4 per cent and 35.8 per cent, respectively.

“The decline was attributed to a 30.4 per cent shortfall in nonoil receipts, relative to the target.

“In terms of share, non-oil revenue maintained its dominance in gross federation receipts, accounting for 54.1 per cent, while oil revenue constituted the balance of 45.9 per cent.”

For Oil revenue, at N466.34bn, was above the level in April by 3.6 per cent, but fell short of the budget target by 41.1 per cent. The increase in oil revenue relative to April was attributed to increased earnings from domestic crude oil and gas sales, following the surge in crude oil price.

September 4, 2022
CBN evolves guidelines to increase financial services
Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has developed the digital financial services awareness guidelines.

This, the bank said, is to address gaps in consumer knowledge and practices with Digital Financial Services.

This is contained in a report it released on Friday titled ‘Digital financial services awareness guidelines.’

The bank noted that “DFS have the potential to expand access to financial services for the Nigerian population and spur innovation in the financial services industry.

“The guidelines provides for a set of principles and expectations for financial service providers to integrate in the provision of DFS to ensure consumer understanding, good treatment, and positive outcomes.”

Related Story:
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“Let’s return naira to respectable value
It stated that the provisions of the guidelines would apply to institutions providing DFS including the Deposit Money banks, merchant banks, Other Financial Institutions, Payment Service Banks, and other payment service institutions as licensed by the CBN.

The objectives of the guidelines include to set “Digital financial literacy standards for digital financial services providers; to align product development, promotion, and consumer awareness to DFS among DFSP; To enhance transparency and proper disclosure on DFS; To provide for the development of financial literacy and consumer education materials on DFS; To ensure evidence driven DFL approach; Integrate DFL in existing financial education programmes; to drive targeted DFL approach to the underserved population; and to provide standard for the promotion of DFL.”

According to the CBN, the DFSs are required to promote DFS awareness and education; provide information that would enable consumers differentiate DFS products from conventional banking products and services; and ensure ease of access to information on all product offerings to enable consumers make informed decisions.

Other are to provide information on products in simple English and local languages; conduct outreach to underserved populations regarding DFS options available to them; provide information on product usage and how to obtain support services when the need arises.
July 10, 2022
CBN Gov. Godwin Emefiele withdraws suit against INEC, Malami

Central Bank of Nigeria (CBN) Godwin Emefiele, has withdrawn the suit he filed against the independent National Electoral Commission (INEC) and the Attorney-General of the Federation over his presidential ambition

Emefiele, through his counsel, S.T. Maliki, told Justice Ahmed Mohammed that a notice of discontinuance had been filed and served on the defendants in the matter.

S.T Maliki made the discontinuation of the case known shortly after it was called for hearing.

Maliki, who held the brief of Chief Mike Ozekhome, SAN, said though the matter was scheduled for the mention, they had Emefiele’s instruction to withdraw the suit.

“Pursuant to the instruction of the plaintiff (Emefiele), we filed a notice of discontinuance dated and filed May 16, 2022.

“And the said notice of discontinuance was served on all the defendants on that said date of May 16, 2022, which proof of service is before your lordship,” Maliki said.

The lawyer said of all the defendants, only the 4th and 5th defendants filed a counter-affidavit in response to the plaintiff’s amended originating summons after the notice of withdrawal had been served on them.

He prayed the court to discontinue the suit and make an order striking it out.

Although the lawyer to the 4th defendant, John Aikpokpo-Martins, opposed Emefiele’s intention to withdraw the suit, he urged the court to dismiss the suit at the cost of N1.5 million.

However, counsel for the 2nd and 3rd defendants, Chris Nevo and T. J. Adi, respectively, did not object to the withdrawal notice.

For Nevo, he asked the court to award a N1 million cost against Emefiele.

In his ruling, Justice Mohammed held that Emefiele had the right to file the notice of withdrawal.

He said the notice of discontinuance was valid and accordingly struck out.

The NewsGuru.com reports that Emefiele, through his lawyer, Ozekhome, had approached the court few backs over the matter.

He had approached the court with an ex-parte motion, seeking the court’s interpretation as to whether he could run for the 2023 presidential primary while he holds office as governor of CBN.

Emefiele is the current CBN governor and also nurses ambition to become Nigeria’s president in 2023.

May 23, 2022
CBN warns DMBs from bringing “composed banknotes ” as part of deposits with the apex bank

Deposit Money Banks (DMBs) have been warned by the Central Bank of Nigeria, CBN, to stop bringing “composed banknotes ” as part of their deposits with the apex bank.

In a circular issued in Abuja, by the Director- Currency Operations Department of CBN, Ahmed Umar, CBN noted that the existence of such banknotes in the economy falsified the true value of currency in circulation and could also be avenue for fraudulent activities.

Composed banknotes are mutilated currency notes comprising several parts of different banknotes of the same denomination.

The parts of such currency notes are usually put together with the intention of receiving value.

He said that henceforth, composed banknotes discovered in the deposit of DMBs shall attract a penalty of 400 per cent of the value.

“The management of the CBN observed with concern the increase number of composed banknotes deposited by DMBs and request for replacement of such banknotes by members of the public.

“The existence of composed banknotes in the economy falsify the true value of currency in circulation, and can also be avenue for fraudulent activities.

“Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 per cent of the value,” he said.

April 3, 2022
Court strikes out suit challenging CBN’s cashless policy over lack of proof

A suit challenging the Central Bank of Nigeria (CBN)’s Cashless Policy has been struck out by Justice Akintayo Aluko of a Federal High Court in Lagos, for lack of proof, absence of jurisdiction and incompetence.

The suit, filed by a plaintiff, Victor Onyegbajo, claimed that the policy was unconstitutional, null and void and of no effect to the extent that it subjected him to disabilities and/or restrictions to which citizens of Nigeria of other communities are not made subject.

He was opposed by the CBN through its team of counsel led by Prof. Fabian Ajogwu (SAN), which prayed the court to, among others, dismiss the suit for lack of jurisdiction.

Ajogwu listed six grounds upon which he persuaded the court that there was no jurisdiction to entertain the Plaintiff’s suit.

Justice Aluko, after hearing the parties on the objections raised by the CBN, upheld Ajogwu’s argument.

The judge held: “The Defendant (CBN) has maintained that the circular issued on the 17/9/2019 for the implementation of the cashless policy to all Deposit Money Banks was done or issued in good faith while the Plaintiff contended that same was done in bad faith as the allegation of discrimination against the Defendant embeds a charge of bad faith because the plaintiff sees the touted act of discrimination as not merely illegal but unjust to him.

“It is not in doubt that the defendant by the provision of Section 51 of the CBN Act is imbued with the power to make regulations for the good order and management of the Apex Bank.

“The phrase “good faith” has been defined in the Blacks law dictionary, the 9th edition at page 762 as “faithfulness to one’s duty or obligation, observance of reasonable commercial standards of fair dealing in a given trade or business, absence of intent to defraud or seek unconscionable advantage’. The defendant has stoutly made a case of good faith for itself and endeavoured to justify its action in the issuance of the circular in controversy.

“It is in its case that the cashless policy envisaged in the circular is aimed at reducing the amount of physical cash in the circulation in the economy, encouraging more electronic-based transactions, fighting corruption and insecurity in the land and strengthening the country’s economy amongst others.

“I have once again examined the circular and the cashless policy prescribed in it. It is obvious that the aims and purpose behind the decision of Defendant accord with the definition given to the phrase “good faith” in the Blacks Law Dictionary.

“I, therefore, agree with the learned senior counsel for the defendant that the action of the Apex Bank culminating in the issuance of the cashless policy and its implementation can be said to have been done in good faith.

“I hold the considered view that the defendant is entitled to the protections provided in Section 52 of the CBN Act and Section 53 BOFIA.

“Going by the above statutory provisions and having issued the circular dated September 17, 2019, in good faith, the defendant is not answerable to the grievance and claims of the plaintiff and the jurisdiction of this court to entertain the instant claims of the plaintiff is effectively curtailed and given a swipe.

“Against the background of the foregoing, this issue is resolved in favour of the Defendant against the Plaintiff.

“Coming from the above, I hold the considered view that the case of the plaintiff lacks merit and substance. Same is fundamentally infected with the virus of frivolity and meddlesomeness.

“The plaintiff has failed to prove or substantiate the alleged violation of his fundamental rights or the much-touted infraction of Section 42 (1) (a) of the constitution of the Federal Republic of Nigeria, 1999 (as amended). Remedy over the alleged infraction of the fundamental rights of the plaintiff is not available to him as no such case has been successfully made out by him.

“This suit is accordingly struck out on grounds of incompetence, lack of proof and absence of jurisdiction.”

Onyegbajo had asked the court for a declaration that the Cashless Policy Directive Issued pursuant to the Banks letter of September 17, 2019, with Reference Number PSN/DIR/CON/CW0O/02/014 subjected him, a member of the Lekki Phase 1 Community in Lekki, Lagos State, to disabilities and/or restrictions to which citizens of Nigeria of other communities are not subject.

The plaintiff also asked the court to make an order of perpetual injunction restraining the CBN from carrying into effect and/or continuing to enforce the Cashless Policy Directive, adding that its implementation violated Section 42 (1) (a) (b) of the Constitution.

April 1, 2022
CBN raises FOREX market with $210m

The Central Bank of Nigeria (CBN), on Wednesday, injected 210 million dollars into the Inter-bank Foreign Exchange Market in continuation of its efforts to sustain liquidity in the market.

The acting Director, Corporate Communications, CBN, Mr Isaac Okorafor in a statement said the apex bank offered 100 million dollars to authorised dealers in the wholesale segment of the market.

He said that the Small and Medium Scale Enterprises (SMEs) segment received 55 million dollars, while 55 million dollars was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA).

Okorafor urged Deposit Money Banks to continue to honour requests from customers with genuine needs, noting that CBN would continue to sustain liquidity in the foreign exchange market.

Meanwhile, the nation’s currency continued to maintain stability in the foreign exchange market, exchanging at an average of N362 to a dollar at the Bureau De Change segment of the market.

May 3, 2018