Tag: Godwin Emefiele

Old Naira notes: Reps C’ttee vows to arrest CBN Gov, Emefiele

The House of Representatives Ad-hoc Committee on New Naira Re-design and Naira Swap Policy has rejected the 10 days extension announced by the Central Bank of Nigeria (CBN) for the exchange of old Naira notes.

TheNewsGuru.com (TNG) reports the Ad-hoc Committee chaired by Rep. Ado Doguwa (APC-Kano) disclosed that the CBN Governor, Mr Godwin Emefiele must appear before the committee or stand the risk of being arrested on the strength of legislative writs signed by Speaker on Monday (today).

Recall that the CBN had fixed January 31, 2023, as the deadline for the exchange of the old naira notes of N200, N500 and N1,000 denominations.

The apex bank, however, announced a 10-day extension on Sunday as approved by President Muhammadu Buhari, given the calls by the parliament and Nigerians in general for more time.

Reacting to the extension, Doguwa in a statement on Sunday, rejected the new February 10 deadline, insisting that the CBN must comply with sections 20 sub 3, 4, and 5 of the CBN Act.

“The 10-day extension for the exchange of the old naira notes is not the solution; we as a legislative committee with a constitutional mandate of the House would only accept clear compliance with section 20 sub 3, 4, and 5 of the CBN Act and nothing more.

“Nigeria as a developing economy and a nascent democracy must respect the principle of the Rule of Law.

“The House would go ahead to sign arrest warrant to compel the CBN Governor, Mr. Godwin Emefiele, to appear before the committee,” he said.

Doguwa said under his chairmanship, the committee would continue its work until it gets the demands of Nigerians addressed in accordance with the laws of the land.

He described the extension as a mere political gimmick to further deceive Nigerians and worsen their economic and social livelihood.

He also said that the policy is capable of frustrating the forthcoming general elections as security agencies pay allowance over the counter to operatives on duty.

Doguwa said that the CBN governor must appear before the committee or stand the risk of being arrested on the strength of legislative writs signed by Speaker on Monday.

January 30, 2023
Where are the new notes? – By Hope O’Rukevbe Eghagha

It was with mixed feelings that Nigerians first received the news in October last year that the federal government was redesigning certain denominations of the nation’s currency. From December 15, 2022, the new notes would be in circulation, the CBN governor Godwin Emefiele promised. It was also announced that by January 31, 2023, the current N1000, N500, and N200 notes would no longer be legal tender. Government explained that some unscrupulous politicians had accumulated billions of naira in private vaults and would deploy the illegal funds to compromising the general elections scheduled to start on February 25th. What has become of those billions?

Owing to the level of distrust between the government and the people, conspiracy theories surfaced with ‘stupendous alacrity! The Minister of Finance did not help matters when she openly disassociated herself from the new policy announcement. She asserted that her ministry ‘was not consulted before the policy was announced and she believes the policy is wrongly timed”. CBN Governor countered by saying that he did not need clearance from the Minister to initiate new policies, adding that he was accountable to the President.

This aspect of the controversy was only laid to rest when President Buhari’s spokesman Garba Shehu issued a statement that ‘the president said the CBN’s decision had his support and he is convinced that Nigeria will gain a lot by doing so! The government explained that the policy would compel persons who had stolen monies and had hidden same in vaults, septic tanks, and warehouses to deposit same in the banks before January 31. Limits as to how much could be deposited per day by individuals and corporate bodies were specified. The National Assembly had tried on different occasions to make the CBN extend the deadline. They have not succeeded so far. What exactly is going on?

Suddenly, Emefiele became a target of arrest for possible prosecution by EFCC. A narrative that he was a financier of terrorism was pushed into the national space. He was accused of massive corruption. Push backs came from counter forces. Emefiele was being persecuted because he had hit the big money bags in society with a harsh policy. It was reported that Emefiele was on the run like a common criminal. A court refused to grant an order to EFCC for the arrest of Emefiele. The general question on the lips of everyone was: what exactly is going on? While this charade was ongoing, news came that the CBN governor had secretly returned to Nigeria. Men of the DSS raided the governor’s office but did not arrest him. Another report came out that the Chief of Defence Staff had deployed soldiers to guard the embattled governor. Two arms of security fighting a battle of arrest and protection? Who gave orders to the Army? Who gave orders to DSS? Is the president aware of the madness at large? Who wants the head of Emefiele and why?

The uncertainty and controversy around the CBN governor are unsalutary. In other climes, the economy would take a nosedive. Perhaps because the economy is already sick, there is nowhere to fall into. He that is down, like the Nigerian economy, needs fear no fall! But there is great confusion in the land that foreign investors no doubt would be watching out for what would happen next. Emefiele himself had got himself into many controversial actions, one being his attempt to contest for the office of the president while heading the Bank of bankers. It seems that because he in the good books of the powers-that-be, no harm can befall him.

It’s a few days to the deadline. There are still many questions. The most important question right now is: where are the new notes? As a corollary to this question, why are the banks reluctant to dispense the new notes? Is it true that some Point of Sale (POS) operators have the new currency while banks claim they do not have the same currency? How much has entered the banking system since the October announcement? How can the banks be monitored for compliance? What are hard hit politicians planning to do next?

APC presidential candidate Senator Bola Ahmed Tinubu recently cried out that the currency and fuel scarcity was met to sabotage the February elections. Buhari has asserted that he wants to leave a legacy of free and fair elections, not tainted with money. He has somewhat withdrawn himself from the political fray and directed that money should not be allowed to determine the winner. Some irony here. Our president now wishes to distant himself from the system which gave him the presidency and sustained his rule for some eight odd years. How the politicians will react is not clear yet. But it is possible to become a statesman after experiencing the rot of the system at close range.

For the common man, the main question is: where are the new currency notes? I am yet to set eyes on the N200 notes. I didn’t have access to the N1000 note until two weeks ago. This has exacerbated the level of desperation in the land. Suddenly changing the currency has its advantages especially if the security of the nation is threatened. One of the first groups to ask for extension of time was Miyetti Allah. They claimed that because they keep a lot of cash, they would need more time. Fittingly the government has stuck to its guns. No compromise. Kidnappers and bandits who keep huge sums collected as ransoms from their victims must be caught in the web.

The Central Bank of any country is insulated, should be insulated from politics and politicking. It ought to be the last economic institution standing tall even when all others collapse. But the CBN under Emefiele has been hijacked by powerful interests who do not have the common good at heart. Emefiele symbolizes that takeover. History will judge him harshly. But for now, Mr. CBN Governor, let hapless and hungry Nigerians have access to the new currency. If the CBN is unable to enforce its directives to the banks, it will be because the bankers see that institution as a weakened and weak one that can only bark without the capacity to bite. Let us end the uncertainty now!

January 30, 2023
(TNG Exclusive) Naira swap: Real reason Buhari endorsed CBN deadline extension emerges

More facts have emerged as to why President Muhammadu Buhari endorsed the extension of the deadline to phase out old denominations of 200, 500 and 1000 Naira notes from circulation.

TheNewsGuru.com (TNG) reports President Buhari approved the deadline extension by ten days as powerful political forces prevailed on him to mellow down because of suffering Nigerians. Also, the presidential candidate of the APC, Bola Ahmed Tinubu approached Buhari to extend the timeline to enable Nigerians swap their old notes.

Recall that Buhari had vowed not to bend backwards as he had asserted that 100 days was more than enough to do away with the old notes.

In an interview, he granted Premium Times, the President had pointedly declared that nothing on earth would make him support an extension.

He also made it abundantly clear that the redesign only targeted those who are hoarding the Nigerian currency in their houses.

But information scooped by TNG revealed that some powerful political forces had intervened and pleaded with him to allow ten days extension for peace to reign.

One of the forces is the presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, who TNG gathered, personally pleaded with Buhari to have a second thought on the deadline.

Also, the House of Representatives minority caucus while hailing the CBN for extending the deadline mentioned the PDP presidential flag bearer, as well, as one of those behind the move to ensure Buhari soft-pedalled.

In a statement, the minority caucus disclosed: “His Excellency Atiku Abubakar’s patriotic intervention at this time further shows him as a compassionate leader who is always concerned and committed towards the wellbeing of Nigerians.

“He has again demonstrated his experience, capacity, and competence to get the system to work in the interest of Nigerians at very critical time. The Caucus therefore called on Nigerians not to rest on their oars but to take maximum advantage of the 10 days extension to swap their old naira notes for the new ones

“The Minority Caucus also urges the CBN to remain focused and intensify its sensitization efforts while putting every measure in place to assist Nigerians, especially those in the rural areas, to access the new naira notes”.

Other political forces include close political acolytes of Buhari, who prevailed on him to mellow down.

January 29, 2023
What we have done to ensure effective distribution of new Naira notes – CBN

The Central Bank of Nigeria (CBN) has disclosed measures emplaced to achieve the effective distribution of new Naira notes.

TheNewsGuru.com (TNG) reports CBN Governor, Mr Godwin Emefiele disclosed the measures on Sunday in a statement extending deadline to phase out old Naira notes from circulation.

A 10-day extension of the deadline from January 31, 2023, to February 10, 2023 was approved by President Muhammadu Buhari to allow for collection of more old notes legitimately held by Nigerians.

Also, a 7-day grace period, beginning on February 10 to February 17,2023, in compliance with Sections 20(3) and 22 of the CBN Act was approved as well to allow Nigerians to deposit their old notes at the CBN after the February deadline when the old notes would have lost Legal Tender status.

On measures to achieve effective distribution of the new notes, Emefiele disclosed the CBN “held several meetings with our Deposit Money Banks (DMBS) and provided them with Guidance Notes on processes they must adopt in the collection of old notes and distribution of the New Notes to all Nigerians. These includes specific directives to DMBS to load new notes into their ATMs nationwide to ensure an equitable / transparent mechanism for the distribution of the new notes to all Nigerians.

“We commenced a nationwide sensitization through the Print and electronic media to create an awareness on the redesigned notes to Nigerians including collaboration with the National Orientation agency to reach all Nigerians across multiple channels.

“We deployed 30,000 Super Agents nationwide to assist in our Cash Swap initiative in the hinterlands, rural areas, and regions underserved by banks in the Country to ensure that the weak and vulnerable ones amongst us can swap/ exchange their old notes.

“We deployed all our staff, particularly the Assistant Directors, Deputy Directors and Directors in Abuja to proceed to all CBN branches Nationwide to join the join the mass mobilization campaign and monitoring programs, working with the Deposit Money Banks, agents and our Branch controllers across the 36 states of the Federation. This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the program.

“Although we have received some reports of breaches by some bank branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid down guidelines.

“We are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.

“Aside from those holding illicit/ stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange”.

According to the CBN Governor, data show that in 2015, Currency -in- Circulation was only N1.4 trillion and that as of October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking Industry and N2.7 trillion held permanently in people’s homes.

“Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of currency in circulation under the firm control of the CBN.

“So far and since the commencement of this program, we have collected about N1.9 trillion; leaving us with about N900 billion (N500b+ N1.9trillion),” the statement reads.

Read full statement below:

PRESS STATEMENT BY GODWIN EMEFIELE GOVERNOR, CENTRAL BANK OF NIGERIA JANUARY 29, 2023 ON PROGRESS OF IMPLEMENTATIONOF NEW REDESIGNED CURRENCY BY THE CENTRAL BANK OF NIGERIA.

1. Good afternoon, ladies and Gentlemen. Like you can see, I’ve just ended a meeting with Mr President. The purpose of the meeting is to provide Mr President with updates about the implementation status of the CBN currency redesign program currently going on across the Federation.

2. First, I’d like to continue to thank Mr president for giving the CBN the approval to embark on this ambitious program because, like I had said in the past, the Central Bank of Nigeria hasn’t had the opportunity to embark on such currency redesign program in last 19 years and indeed, let me emphasize that only an incorruptible leader of the President’s stature can give such approval to the CBN.

3. Ladies and Gentlemen, from the on-set of this currency redesign program, we made it clear that for 19 the CBN hasn’t been able to conduct this important aspect of its mandate, whereas this should normally have been be done within a 5-8 years window.

4. Our aim is mainly to make our Monetary Policy Decisions more efficacious and like you can see; we’ve started to see inflation trending downwards and exchange rates relatively stable. Secondly, we aim to support the efforts of our Security agencies in combating Banditry and Ransom taking in Nigeria through this program and we can see that the Military are making good progress in this important task in Nigeria.

5. Ladies and Gentlemen, available data at the Central Bank of Nigeria has shown that in 2015, Currency -in- Circulation was only N1.4 trillion. As at October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking Industry and N2.7 trillion held permanently in people’s homes. Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of currency in circulation under the firm control of the CBN.

6. So far and since the commencement of this program, we have collected about N1.9 trillion; leaving us with about N900 billion (N500b+ N1.9trillion). To achieve effective distribution, of the new currency the CBN has taken the following steps:

a. We held several meetings with our Deposit Money Banks (DMBS) and provided them with Guidance Notes on processes they must adopt in the collection of old notes and distribution of the New Notes to all Nigerians. These includes specific directives to DMBS to load new notes into their ATMs nationwide to ensure an equitable / transparent mechanism for the distribution of the new notes to all Nigerians.

b. We commenced a nationwide sensitization through the Print and electronic media to create an awareness on the redesigned notes to Nigerians including collaboration with the National Orientation agency to reach all Nigerians across multiple channels.

c. We deployed 30,000 Super Agents nationwide to assist in our Cash Swap initiative in the hinterlands, rural areas, and regions underserved by banks in the Country to ensure that the weak and vulnerable ones amongst us can swap/ exchange their old notes.

d. We deployed all our staff, particularly the Assistant Directors, Deputy Directors and Directors in Abuja to proceed to all CBN branches Nationwide to join the join the mass mobilization campaign and monitoring programs, working with the Deposit Money Banks, agents and our Branch controllers across the 36 states of the Federation. This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the program. Although we have received some reports of breaches by some bank branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid down guidelines.

e. We are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.

f. Aside from those holding illicit/ stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.

7. Based on the foregoing, we have sought and obtained Mr President’s approval for the following:

i. A 10-day extension of the deadline from January 31, 2023, to February 10, 2023; to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside the CBN losses their Legal tender Status. Our CBN staff currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve these objectives.

ii. A 7-day grace period, beginning on February 10 to February 17,2023, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status.

We therefore appeal to all Nigerians to work with the Central Bank of Nigeria to ensure a hitch free process for the implementation of this very important program. Thank you.

GODWIN T. EMEFIELE

GOVERNOR CENTRAL BANK OF NIGERIA

January 29, 2023
New Naira notes not enough to go round – Bank operators

Operators of Commercial Banks in the country have countered the Central Bank of Nigeria (CBN) over claims that the commercial banks have enough naira notes in their kitty but hoarding them.

The banks countered the CBN when their officials appeared before the House of Representatives ad hoc committee investigating the scarcity of the new notes and the January 31 deadline by the apex bank.

Mrs Hadiza Ambursa, an official of Access Bank, who represented the Managing Director of the bank said it only got 10 per cent of the money it deposited with the CBN.

According to her, “we are not getting the money as quickly as we want them. We only get 10 per cent of the money deposited. We are paying and collecting money. We are also loading our ATM.

Mr Jimoh Garuba, the representative of Sterling Bank, said it receives allocation weekly from CBN but had no sufficient fund to meet its customers’ demand.

He said, “as we speak, our Automated Teller Machine (ATM) is dispensing what we received which fluctuates most time.”

He said his bank received a minimum of N150 million from the CBN weekly to be shared among its branches in Abuja.

He further said in Kaduna, the bank received N150 million weekly which is shared among its branches across the 36 states of the federation.

According to him, in Kano, “we received N100 million weekly and we can only dispense through ATM and not through the counter.

“If we are to go through the counter to dispense the money, the allocation will go in less than 10 minutes.”

He said the percentage of money received from the CBN varies on weekly basis, adding that it receives 80 per cent of what it deposited in Abuja and less than 10 per cent in Kano.

He said the reason the newly designed note was not in circulation was a result of the cashless policy of the CBN.

Ms Arerepade Akagwe, the representative of the United Bank for Africa (UBA), said the bank had taken 70 per cent of the old money it deposited with the CBN.

She said the bank collects money from CBN every day and today isn’t an exception, adding that the directive from the CBN was not to issue the old notes from the counter.

Other banks in attendance such as Guarantee Trust Bank (GTB), ECO bank, Lotus Bank and Fidelity agreed that they have collected 60 per cent of the old naira money deposited.

Lotus Bank for instance said in the last few weeks what it was receiving was insufficient, adding that it received an average of N40 million weekly and that was not sufficient because the customers are many.

Some of the lawmakers, however, queried the workability of the cashless policy, raising concerns about their constituents living in remote control.

The Chairman of the committee, Rep. Alhassan Ado-Doguwa, said the bank operators’ appearance before the committee was not a witch hunt exercise but a fact finding on issues affecting the people.

“We need to know the actual facts regarding claims by commercial bank that CBN has not released new notes and the counter claim by the CBN that it has released same.

He berated the apex bank for giving deadline on the old notes, saying it is worrisome that a time the country wanted to hold election that it would consider changing the country’s legal tender.

He said the CBN should have contacted the parliament when it wanted to embark on such nature of changing the legal tender, because the leadership of the house is not happy about it.

According to him, changing of legal tender is not peculiar to Nigeria, it happens the world over. But when the CBN wants to bring something sinister, we will blow the whistle.

“We are in a democratic government and no one can be greater than the institution of democracy,” he said.

January 27, 2023
NLC urges CBN to revisit policy on new Naira notes

The Nigeria Labour Congress (NLC) has urged the Central Bank of Nigeria (CBN) to extend its January 31 deadline to phase out old notes in circulation in the country.

Mr Ayuba Wabba, NLC President, said this when speaking with newsmen on Thursday in Abuja on his achievements and challenges as congress president for the past eight years.

Wabba, who was elected as president in 2015, had served two terms and have only weeks to bow out.

Wabba said that the directive of the Senate of the National Assembly seeking an extension of the deadline was appropriate.

He said that this was owing to the fact that majority of Nigerians who live in remote areas where banks do not exist were yet to access the new Naira notes.

According to him, as NLC, “we have tried to respond officially by writing to the CBN governor. We also wrote to the President to say that this new policy of changing our Naira needs to be revisited.

“It is obvious that even in the city centers, banks are still dispensing old notes and this is correct. I remember, I went to about 10 banks and none was actually dispensing the new notes.

“In fact, most of the banks now, if you are lucky, they will dispense only few notes and you can check that around.

“So the new notes are not available and they are not in circulation and the old notes are being rejected.

“Even in city centers, where we have banks, the banks are not dispensing.

“If you go to the rural areas and see the chaotic nature of how people have come with their money to change, it has become a problem,” he said.

He added that no policy should be meant actually to haunt people like what is happening now.

The NLC president therefore called on the Federal Government to look at the issue carefully before it snowballs into a major crisis in the country.

He noted that the new notes are not easily available. There are only few in circulation, adding that the rural areas is worse. As most of the rural areas don’t have banks.

“The state I come from in the entire states. You have only three banks in three local government out of 27 local governments.

”All the other local governments, 24 of them, do not have banks and some of them are not accessible,” he said.

Wabba said government must think through the new Naira policy in order for the people not to suffer the consequences of the policy.

”It is the poor masses and even the working class that will feel the pinch of this policy. Because how will you not withdrawal the old currencies when the new one is not even available.

”The policy, certainly, will also impact negatively on our economy, because the notes are not available and people are now rejecting the old notes.

”The policy certainly is not a policy that is making people to believe that the policy is meant to address the fundamental issues.

”We align ourselves fully with the position of the Senate, we call for this policy to be reviewed and to give extension, so that all the old notes can then be mopped up by the bank,” he added.

January 27, 2023
CBN dragged to court over Naira notes

Prof. Joshua Alobo has approached the Federal High Court, Abuja, praying the court to stop the Central Bank of Nigeria (CBN) from insisting on the January 31 deadline for using the old naira notes.

Alobo, in the suit marked: FHC/ABJ/CS/114/2023, also prayed the court to make an order extending the duration when the old notes would cease to be legal tender for a period of three weeks.

He said this was to give time for when commercial banks would have enough new notes to dispense.

In an affidavit deposed to by one Musa Damudi, the plaintiff told the court that the CBN governor had on Oct. 26, 2022, announced that the apex bank would introduce new series of redesigned N200, N500 and N1,000 banknotes into the financial system.

He said that the decision, though a welcome one, was causing anxiety among Nigerians, especially the less privileged ones as they were yet to have access to the new naira notes.

He said that although the new notes, which were unveiled on Nov. 23, 2022, by President Muhammadu Buhari to curb inflation and entrench a cashless society so as to curb money laundering and corruption, its unavailability was causing apprehension among Nigerians.

He accused the commercial banks of failing to make the new notes available to their customers, adding that as of Jan. 25, he was still handed the old notes on the counter and through the Automatic Teller Machine (ATM).

He decried the situation where some shopping malls within the Federal Capital Territory, (FCT) had announced that they were rejecting the old notes, with the ATM limiting daily withdrawal to N20,000.

The law professor argued that the Jan. 31 deadline for using the old notes was discriminatory against the rural dwellers, poor and less privileged persons in the society.

“This is as politically exposed persons are paid with the redesigned notes.

“The cashless policy of the CBN is innovative and a welcome development but the rural dwellers that constitute the bulk of the population do not have access to internet and banking facilities.

“The current daily limit of transaction to N20,000 is against the Central Bank daily limit of N100,000.

“The applicant was shocked when he was paid with mint of the old note with serial Nos 435641, 435642, 43643, 435636, 435638, 435639.

“It is hereby marked exhibit ‘A’ and ‘B,” he averred.

The plaintiff, in his written address in support of the suit, submitted that the matter was germane to the economic stability and prosperity of less-privileged persons in the country.

He argued that such persons may not have the necessary connections to commercial banks unlike politically exposed persons who had the financial muscle to deposit their old notes.

“We concede that the policy of redesigning the currency is within the powers of the CBN, especially with the approval and endorsement of the President.

“We respectfully submit that the Jan. 31 deadline for phasing out the old naira notes is of grave constitutional importance for the economic survival of the vast population that constitute the entity called Nigeria.

“The percentage of persons with lower educational background and economic realities of rural dwellers and some local governments in Nigeria without a single bank is high,” he argued.

Listed as 1st to 3rd defendants in the suit are the CBN, the CBN Governor, Mr Godwin Emefiele, and the Attorney-General of the Federation, Mr Abubakar Malami, SAN.

No date has, however, been fixed for hearing of the matter.

January 27, 2023
See key features of AfriGo, Nigeria’s new national domestic card

The Central Bank of Nigeria (CBN) in collaboration with the Nigerian Inter-Bank Settlement Systems (NIBSS) launch the National Domestic Card Scheme ‘AfriGo’ on Thursday with the view to transform the Nigerian payment system.

Speaking at the launch, Governor of the CBN, Godwin Emefiele disclosed that the launch AfriGo was another major step in the drive to ensure a thriving and competitive payment landscape in Nigeria.

He said: “I am gratified that the Nigerian banking community has risen up to the challenge of the national payment system through the implementation of a National Domestic Card Scheme.

”The cashless policy which commenced in 2012 signposts our core drive to strengthen the national payment system and the usage of electronic platforms in Nigeria.

”In line with the National payment system strategy, the CBN has been deliberate in collaborating with relevant stakeholders to enhance the national payments infrastructure through initiatives such as the Bank Verification Number (BVN).

“We will all agree that the cashless policy has created value and gender competition, attracted investments into the Nigerian banking and payments ecosystem, ” he said.

The CBN governor said that while the penetration of card payments in Nigeria had grown tremendously over the years, many Nigerians were still excluded.

He said the challenges that had limited the inclusion of Nigerians included the high cost of card services as a result of foreign exchange requirements of international card schemes and the fact that existing card products did not address local peculiarities of the Nigerian market.

He said that given the limited usage of cards by Nigerians and in a bid to deepen penetration, the banks actively promoted National Domestic card scheme, which would be accessible to all Nigerians and also address local peculiarities.

Emefiele said the scheme was therefore, an important plot in closing the gap that had remained with us since the cashless policy was introduced in 2012.

”It is important to note that the establishment of national domestic card scheme is in line with domestic global trends.

”With this initiative, Nigeria will be joining countries like China, Russia, Turkey and India, who have launched domestic card schemes, because of its transformative benefits for their respective payments and financial systems, particularly for the underbanked.

“The initiative is aimed at providing more options for domestic consumers while promoting delivery of services in a more innovative, cost effective and competitive manner, ” he said.

Emefiele said the national domestic card scheme would provide opportunities for the economy to integrate the informal segments of the economy, reduce shadow banking and bring Nigerians into the formal financial services system.

“I look forward to more innovative products and services which will leverage on the national domestic card to avail digital financial services across all geographies and economic classes in Nigeria.

“It is important to note that all domestic transactions that are conducted in Nigeria will have to go through the national domestic card.

“This does not stop the usage of other existing cards but given that the charges on those cards are in dollars, we will no longer pay for those charges, ” he said.

TNG reports some of the key features on the front side of the new national domestic card include: Bank/Financial Institution/Partner Name & Logo, Contactless Payment capability, Smart Chip, Expiry Date and AfriGO Brand identity.

Features on the reverse side of AfriGo include NQR Embedded (payments & collections), CVV Code and Hologram.

Also speaking at the launch, Aisha Ahmad, the Chairman of NIBSS and CBN Deputy Governor in Charge of Financial System Stability said the forward-thinking regulatory stance of the CBN had offered unique opportunities to drive cashless transactions to boost financial inclusion, deepen the financial system and promote inclusive economic growth.

She said that NIBSS had also become an important reference point for a variety of participants in the ecosystem, as they had paved the way for this latest initiative.

Ahmad said: ” We shall all be witness to a strategic turning point for our payment system because the Nigerian National Domestic card scheme is the first CBN led domestic IT initiative in Africa.

”The card will give us sovereignty over data, save costs and present new list of opportunities for those in the card business.

“This scheme was birthed with continental aspirations to make AfriGO a payment beacon for the African continent,” she said.

Andrew Walden, the Technical Consultant on the Nigerian National Domestic Card Scheme said that Nigeria had been a regional leader in many of the global payment trends and was now ready to adopt the opportunities of the domestic card scheme.

“Nigeria has played an enviable role in advancing the forefront of revolution in the payment industry.

This scheme provides an opportunity for Nigeria to cement its place at the forefront of digital payments innovation,” he said.

Mr Premier Oiwoh, Managing Director of NIBSS said that the scheme was developed to promote a robust in-country domestic card payment scheme tailored to address the specific requirements of Nigeria’s payment industry.

He said it was also to provide innovative offerings tailored to the Nigerian market and beyond.

AfriGOpay Financial Services Ltd. (AFSL) is an affiliate of the Nigeria Inter-Bank Settlement System (NIBSS) and will be responsible for deploying and managing the National Domestic Card Scheme for Nigeria.

January 26, 2023
BREAKING: CBN unveils AfriGo, Nigeria’s new national card scheme

The Central Bank of Nigeria (CBN) has unveiled the first African Central Bank-led National Domestic Card Scheme known as AfriGo.

TheNewsGuru.com (TNG) reports CBN and the Nigeria Inter-Bank Settlement Systems (NIBSS) unveiled AfriGo at a virtual event on Thursday.

According to the CBN, AfriGo will be accessible to all Nigerians, which the apex bank said is expected to address Nigeria’s local peculiarities.

“The domestic card scheme is expected to strengthen the national payments system and deepen the usage of electronic platforms in Nigeria,” CBN Governor, Mr Godwin Emefiele said.

According to Emefiele, says the CBN’s Cash-less Policy has created value, engendered competition and attracted investment into the Nigerian banking and payments ecosystem.

The CBN Governor stressed the new card scheme is aimed at providing more options for domestic consumers whilst also promoting the delivery of services in a more innovative, cost-effective and competitive manner.

He assured Nigerians that the card scheme will open more opportunities for the Nigerian economy to integrate the informal segment of the economy, reduce shadow banking and bring more Nigerians into formal financial services.

The CBN Governor hailed the Nigerian Banking Community for rising to the challenge of strengthening the national payments system through the implementation of a Domestic Card Scheme.

“This effort is not a quest to prevent international service providers from continuing to provide services in Nigeria,” Emefiele said.

He further stressed the new policy aimed at providing more options for domestic consumers whilst also promoting the delivery of services in a more innovative, cost-effective and competitive manner.

“CBN is committed to a robust, efficient and safe national payments system and welcomes innovation from both domestic firms and foreign investors,” Emefiele said.

TNG reports AfriGo card was developed by AfriGopay Financial Services Limited, an affiliate of NIBSS licensed by the CBN.

The Company is responsible for deploying and managing the National Domestic Card Scheme for Nigeria.

January 26, 2023
INVESTIGATION: Scarcity of new Naira notes causes hardship for Nigerians

The newly introduced naira notes and revised cash withdrawal limits announced by the Central Bank of Nigeria (CBN) to curb crime, inflation and vote buying during elections, have left many citizens stranded and frustrated, TheNewsGuru.com (TNG) investigation has revealed.

More than one month after the official launch of the new designs, many Nigerians in both urban and rural areas, have been unable to access the new notes as countdown to the January 31^st deadline for the mop-up of the old N1000, N500 and N200 banknotes approaches.

The apex bank has insisted that the highest denominations of the naira in old banknotes will cease to be legal tenders by the expiration of the deadline and many Nigerians eager to beat this time limit, have flocked to commercial banks to deposit their old cash in exchange for the new banknotes.

Scarcity of Redesigned Banknotes

Contrary to expectations, commercial banks have continued to dispense the old banknotes.

A disappointed Nigerian Charity Agber, claimed that many Automatic Teller Machines (ATMs) around her area in Abuja failed to dispense cash and when she went into the banking hall to make withdrawals over the counter, she was paid with old banknotes.

“I needed to withdraw yesterday and there were no ATMs dispensing cash around my area. So, I had to go into the banking hall and the queue was something else. When I eventually got paid, it was still with the old notes,” she said.

Another bank customer Tayo Adewunmi said: “The deadline is affecting the common man because the new Naira notes are not in circulation as expected. They are being paid with old ones like what a bank I visited on Monday did.”

In the same vein, Omoruyi Emma added: “Frustration is taking its toll on the citizens, all over Abuja almost all ATM had no money to dispense and if you go the bank, they have only old notes and the deadline is so close how does one still withdraw old notes at this time? Whom did we offend in this country?”

A staff with one of the leading commercial banks told our reporter that they were still dispensing old notes because they did not have new notes to dispense to customers.

Some business outfits have already stopped receiving payments made using the old banknotes, a move that can have effects on the Nigerian economy.

Revised Withdrawal limit

In addition to the challenge of scarcity of the new banknotes, individuals are only able to withdraw a maximum amount of N100, 000 per week, while corporate organisations have a limit of N500, 000 per week.

As a result, some banks have now restricted the amount individuals can withdraw daily to N20, 000.

For example, the Guaranty Trust Bank in Bodija Ibadan the Oyo state capital allows customers to withdraw a maximum of N40,000 Daily, while the Access bank in the University College Hospital (UCH) is allowing a daily withdrawal of not more than N20, 000.

The Director of Banking Supervision in the CBN, Haruna Mustafa, said that withdrawals above the set weekly limits of N100, 000 and N500, 000 for individuals and corporate organisations will attract a processing fee of five per cent and 10 per cent respectively.

Mustafa explained that only denominations of N200 and below are expected to be loaded into ATMs and the maximum cash withdrawal via Point of Sales Operators (POS) is now N20, 000 daily.

“In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5million and N10million for individuals and corporate organisations respectively,” he stressed.

CBN’s Efforts Towards Financial Inclusion

The apex bank has also launched a cash swap programme in partnership with super agents and deposit money institutions (DMBs), which it says will promote financial inclusion, as it particularly targets citizens in rural areas without a bank account.

The programe which became effective on 23^rd January will enable citizens in rural areas or those with limited access to formal financial services to exchange the old naira notes for the redesigned banknotes.

Through the cash swap programme, the old N1000, N500 and N200 notes can be exchanged for the redesigned notes or the existing lower denominations from N100 and below which remain legal tender.

Meanwhile, the House of Representatives is set to invite the CBN over the alleged scarcity of new naira notes and has asked for an extension of the deadline for swapping the old notes with new ones by six months.

However, it remains to be seen if the apex bank would bow to pressure and extend the deadline for the return of old bank notes.

January 26, 2023