The Nation Newspaper

Category: Money

  • CBN relaxes restrictions on fx rates quoted by IMTOs

    CBN relaxes restrictions on fx rates quoted by IMTOs

    The Central Bank of Nigeria (CBN), has removed the allowable limit of exchange rate quoted by the International Money Transfer Operators (IMTOs).

    This is according to a circular signed by Dr Hassan Mahmud, the Director, Trade and Exchange Department of the CBN, addressed to IMTOs and the general public.

    According to Mahmud, the directive is in line with the CBN’s commitment to liberalise the Nigerian foreign exchange market,

    ”IMTOs are hereby allowed to quote exchange rates for Naira payout to beneficiaries based on the prevailing market rates at the Nigerian foreign exchange market on a willing seller, willing buyer basis.

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    “For the avoidance of doubt, by this circular, the cap on allowable limit of -2.5 per cent to +2.5 per cent around the previous day’s closing rate of the Nigerian Foreign Exchange Market is hereby removed.

    “Authorised dealers, IMTOs and the general Public are hereby informed to note and comply accordingly,” he said.

    The CBN had earlier directed Deposit Money Banks (DMBs) to sell their excess dollar stock in a bid to stabilise the exchange rate.

    The CBN also cautioned the DMBs against hoarding excess fx currencies for profit.

  • Naira weakens to N1,500/$ at parallel market

    Naira weakens to N1,500/$ at parallel market

    The naira yesterday exchanged at N1,500 to dollar at the parallel market.

    At the Nigerian Autonomous Foreign Exchange Market (NAFEM)- the official market, the naira traded at N1,455.59 to dollar.

    The local currency has continued to depreciate at both official and parallel markets over persistent dollar scarcity.

    The naira on Wednesday exchanged at N1,482.57 to dollar at the NAFEM.

    The exchange rate fell to N1,460 to dollar at the parallel market with traders expecting further weakness in the coming days as dollar shortages worsen dropped by 36.68 percent to $64.29 million on Monday from $100.97 million recorded on Friday.

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    Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

    Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

    “The problem is that dollars are scarce in the market. People are not bringing dollars and demand is so high that is why the price is going up,” a street trader told Business Day on Tuesday morning.

    Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

    Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

    On ways to strengthen the naira, he advised that in the short-term, there is need to find non-market damaging ways to increase the supply of hard currencies and reducing the demand for same.

    He said that insecurity hampering food production needs to be tackled with a sense of urgency and effectiveness.

    “Priority should be given through deploying pragmatic incentive programs to drive up the volume of food products for domestic consumption and industrial use to reduce our food import bill. All government consumption expenditures requiring the use of hard currencies should be suspended indefinitely, starting now,” he advised.

  • AfDB, Attijariwafa Bank sign Euro 100m risk-sharing trade pact

    AfDB, Attijariwafa Bank sign Euro 100m risk-sharing trade pact

    The African Development Bank and Attijariwafa bank Europe, European subsidiary of the Attijariwafa bank group, have signed a €100 million risk-sharing agreement to strengthen businesses and trade across Africa.

    The pact is expected to catalyse nearly €500 million worth of trade for companies operating in more than twenty African countries. It will help to diversify production capacity in beneficiary countries and bolster competitiveness, generate higher tax revenues and create new jobs.

    African businesses have faced limited access to commercial financing due to the tightening of capital and compliance regulatory standards across the continent. As a result, several international banks have reduced their commitment and activities in Africa.

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    “By joining forces with Attijariwafa bank, we are not just sharing risks. We are creating new opportunities for all those who undertake and project themselves in Africa”, said Mohamed El Azizi, African Development Bank Director General for North Africa.

    “We want to break the continent’s financial isolation by supporting African champions who can strengthen the financial inclusion of businesses and help them to expand on the continent,” said Achraf Tarsim, African Development Bank Country Manager for Morocco.

    Younes Belabed, Managing Director of Attijariwafa bank Europe, said: “For more than a decade, the Attijariwafa bank Group has been committed to the development of the African continent in a spirit of inclusive and mutually supportive growth. With the partnership set up between the African Development Bank and Attijariwafa bank Europe, our Group is consolidating its position as a major player in strengthening the African economic fabric and a major contributor to the revitalisation and development of North-South exchanges.

  • Ecobank Nigeria launches MySME growth series

    Ecobank Nigeria launches MySME growth series

    Ecobank Nigeria, a subsidiary of the Ecobank Group, the leading pan-African bank has launched an innovative training program targeted at empowering operators of small and medium enterprises (SMEs) in the country. Through the initiative, titled MySME Growth Series, the Bank will train over 1 million SME operators across the country in 2024.

    Announcing the programme in Lagos, Osahon Akpata, Head, SME & Partnerships, Ecobank Nigeria, said the empowerment program is line with the Bank’s commitment to power the success of SMEs in different sectors of the economy.

    “Ecobank aims to train 1 million SMEs in Nigeria to improve their capabilities and stimulate growth. We are launching the first phase of our training program – MySME Growth series, a selection of virtual bootcamps led by facilitators who are experts in their fields.

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    SMEs are the growth engine of Nigeria’s economy contributing almost 50 per cent of GDP and 90 per cent of jobs. As a bank that is growth focused, Ecobank is committed to the success of SMEs in different sectors of the economy,” he said.

    Further, he disclosed that with an overall theme of “Scaling up your SME in 2024”, the first weekly MySME Growth webinar series will hold on Thursday, February 1 with a focus on ‘Growing your business online’ and would be facilitated by Ijeoma Arum, Chief Commercial Officer, Jumia Nigeria. He noted that the webinar will hold every Thursday throughout the year.

    In addition, Akpata explained that the series will dwell on various topics that cover key areas of concern for small businesses such as accounting, credit, sales & marketing, taxation and inventory management, adding that the Bank is also planning to launch an SME Mentorship program to collaborate with successful entrepreneurs.

    “We will also equip SMEs with tools to help their business such as budget templates, calculators for simulating scenarios and links to government forms. They will be trained on resources for starting a business including how to register, statistics for various industries and geographies and key points to consider when running a business. We will also provide articles on key topics including tips to increase sales, advertising ideas, business management practices, case studies and guides to leveraging technology, amongst others,” he enthused.

  • Interswitch partners Multipay Congo

    Interswitch partners Multipay Congo

    Interswitch Limited and Multipay Congo have joined forces to enhance the payments ecosystem in the Democratic Republic of the Congo (DRC).

    The partnership, which is a response to the rapidly evolving and expanding demands of the DRC market, will enable Multipay Congo to leverage Interswitch’s technology and expertise to deliver innovative and secure digital payment solutions to the Congolese market, supporting financial inclusion, driving digital transformation, and boosting economic growth in the country.

    Multipay Congo is a pioneer financial technology company that launched the first local interbank payment service in the DRC in 2015, called “Multipay”, in collaboration with four major banks, namely: the BCDC (Banque Commerciale du Congo), Equity Bank Congo, FirstBank DRC, and Rawbank. The first two banks have since merged to become the Equity BCDC.

    Multipay service enables holders of private (local) cards from these banks to perform transactions at ATMs, point-of-sale terminals, and in bank branches across the country.

    Interswitch Limited is an Africa-focused integrated digital payments and commerce company that was established in 2002 in Nigeria. Interswitch, operating in over 14 countries in Africa, facilitates the electronic circulation of money and the exchange of value between individuals and organisations on a timely and consistent basis.

    The company offers a range of payment products and services such as cards, digital tokens, online stores, and payment platforms, to help businesses and individuals across Africa grow and thrive.

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    Expressing his enthusiasm for the partnership, Olivier Bueno, the Managing Director of Multipay Congo said:

    “We are delighted to partner with Interswitch Limited, another pioneer and leader in the African digital payment space. This partnership will enable us to continue to pursue our ambition to actively participate in the financial inclusion objectives of the Central Bank of Congo by developing innovative, accessible, secure digital financial products and services, adapted to the needs of the population and businesses.”

    By working with Interswitch, we leverage our local knowledge and skills to promote financial inclusion and economic empowerment, as well as to support the development of the digital economy in DRC and in the region.”

    Also describing the partnership as a win-win for both organizations and the people of the Congo, Akeem Lawal, the Managing Director, Payment Processing and Switching (Interswitch Purepay) said:

    “We are pleased to enter this partnership with Multipay Congo to bring our transformative payment solutions to the Democratic Republic of the Congo. The partnership aligns with our overarching efforts to expand our footprint across more African regions, developing and deploying innovative solutions until payments are a seamless part of everyday life on the continent.

    As part of this partnership, we will strengthen our presence in the DRC, one of Africa’s most populous and promising markets, so, we look forward to working with relevant regulators and other financial service providers to jointly provide safe, reliable, and convenient financial services to individuals and businesses in the DRC.”

  • Bank empowers more business customers with cash

    Bank empowers more business customers with cash

    Wema Bank has disbursed eight million naira in cash to 116 customers in the sixth monthly draw of the Wema Bank 5 for 5 Promo Season 3.

    The draw, at Oba Adesida branch in Akure, Ondo State, featured over 70 customers.

    Among winners were grand prize recipients, Nneka Okorie and Gbemisola Falana, who won one million naira each.

     Divisional Head of Retail and SME, Ayodele Olojede, greeted the winners, saying the 5 for 5 Promo transform lives and businesses.

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    She restated the bank’s commitment to making a difference in the lives of people.

    “As an innovative bank we constantly reinvent, develop ways to help our customers thrive and remain financially secure…” Olojede said.

    “Our mission is to empower lives through innovation, and Financial Inclusion is a huge arm of this mission.”

    Wema’s  5 for 5 Promo Season 3, launched in July, has distributed forty five million naira in the five draws of the first half of the season.                                     

  • Report: Plan to allow uniform forex rate reporting underway

    Report: Plan to allow uniform forex rate reporting underway

    There are reports that the Central Bank of Nigeria (CBN) is working with Bureaux de Change (BDCs) to have a uniform rate reporting portal.

     The move is expected to help the apex bank narrow the widening gaps between the official and parallel markets.

     The CBN, according to Bloomberg report, has given the Association of Bureaux de Change Operators of Nigeria the go-ahead to publicly post the buying and selling rates of the naira against the dollar online.

     The naira yesterday closed at N1,370/$ at the parallel market. The local currency however closed at N878/$ at the Investors and Exporters Window- the official market where $145 million turnover was recorded.

     The naira fall worsened after the Central Bank of Nigeria (CBN) last year,  unified all exchange rates into the I&E window last Wednesday and allowed market forces to determine exchange rate for the naira.

     The policy saw the apex bank collapse exchange rates – the International Air Transport Association (IATA) rate, parallel market rate, Interbank Exchange Rate and Bureaux De Change (BDC) rate – into the I&E window.

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     By that singular move, dollar applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance, and Small and Medium Enterprises (SMEs) are processed through the I&E window- where rates are determined by market forces.

     The operational changes to the foreign exchange market also include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.

    The current move to create uniform rates reporting portal is intended “to enhance competitiveness and price discovery in the market and challenge the parallel market,” said the group’s president, Aminu Gwadabe.

    The step reverses measures by the previous leadership of the central bank to control bureaux de change and limit the visibility of the unofficial market in an effort to shore up the official naira. That move only drove activity onto the street and into the shadows.

    Naira rates will now be broadly visible online — part of a wider effort by Africa’s most-populous nation to move away from a managed exchange rate and unify the two markets.

  • More winners emerge in Stanbic IBTC Bank Reward4Saving draw

    More winners emerge in Stanbic IBTC Bank Reward4Saving draw

    Seventy customers have emerged winners of cash prizes in the December draw of Stanbic IBTC Bank’s Reward4Saving Promo, a reward scheme for savings account holders of the bank, introduced to encourage a savings culture. Customers who save at least N10,000 in their savings account for at least thirty days, qualify for the draw.

    During the draw, Layo Ilori-Olaogun, Head, Middle Markets and Youth Segment, Stanbic IBTC Bank, applauded the commitment of participants and winners and urged them to continue the discipline of saving.

    According to Ilori-Olaogun, “The Reward4Saving Promo, now in its third season, is excited to have completed four monthly draws and one quarterly draw; rewarding 287 customers with N35 million. As a people-driven financial institution, we are delighted to hear past winners share testimonies of how this initiative has immensely decreased their financial burden. At Stanbic IBTC Bank, we prioritise putting our customers’ matters first, which is evident in our high customer retention and loyalty.”

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    The promo which runs till August 2024, will reward seven customers with N2 million each across seven regions in its grand finale draw. Customers are enjoined to continue saving as this is the only guarantee to qualify for the promo.

    “In the months preceding the finale, seventy customers will each be rewarded with N100,000 in the monthly draws; while seven customers will win N1,000,000 in the quarterly draws. Existing and new customers are urged to keep saving to boost their chances of winning,” Layo said.

    Stanbic IBTC Bank introduced the Reward4Saving promo in 2021 to encourage customers to save for rainy days. Customers who deposit at least N10,000 in their Stanbic IBTC Bank Savings Account or @ease wallet for a minimum of thirty days, qualify for the draws.

  • Remita okays more commissions, incentives for JAMB ePins agents

    Remita okays more commissions, incentives for JAMB ePins agents

    Remita, a leading indigenous payment company, is empowering prospective students to take control of their academic journeys by offering a seamless registration  for the 2024 Unified Tertiary Matriculation Examination (UTME) and Direct Entry (DE) registrations.

    As recently announced by the Joint Admission and Matriculations Board (JAMB), the sale of ePINs for this year’s UTME and DE registrations commenced on Monday, January 8,, and will end on Monday, February 24, this year.

    According to Chinedu Alisa, the Retail Manager at Remita, prospective candidates can now purchase their ePINs on the Remita platform, which offers a hassle-free registration process and multiple payment options. 

    “We are committed to empowering young people across Nigeria to achieve their academic dreams, The sale of 2024 JAMB Registration ePINs on our platform simplifies the registration process and eliminates any inconvenience that candidates may face during their JAMB registration. We are proud to play a part in helping prospective students take control of their academic journeys”.

    Explaining the process of purchasing the ePINs, Alisa said candidates are required to register with their National Identification Number (NIN) by sending an SMS to 55019 or 66019 with the word ‘NIN,’ followed by a space and their 11-digit NIN. They will then receive a 10-digit profile code via the phone number that should be used to purchase their ePINs. Candidates can proceed to the Remita website on Remita.net/JAMB, then choose ‘UTME’ or ‘Direct Entry’ and input their profile code, registered phone number, and other necessary details. Once payment is completed, the PIN will be delivered to the candidate’s registered phone number and displayed on their Remita receipt. 

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    Remita has introduced the widest range of payment options, including bank transfer, debit or credit card, USSD, eNaira, mobile wallet, bank account, and internet banking. Prospective candidates can also walk up to any Remita agent or any bank branch to purchase their ePINs with Remita or pay through Remita on the JAMB’s e-facility website. 

    As the payment platform continues to streamline processes, provide exceptional support, and deliver personalised experiences, Remita also aims at empowering agents, schools, and other partnering organizations across Nigeria who resell JAMB ePINs, with increased commissions when they purchase on Remita. “We are making sure that candidates benefit from a hassle-free registration process, while agents and schools enjoy the most competitive commissions per transaction”. 

    He, however, warns that agents are prohibited from selling the ePINs above JAMB’s approved sales price, saying any agent caught will immediately be blacklisted from the system and handed over to the authorities. 

    With the sale of UTME ePINs ending on Monday, February 24, 2024, prospective students seeking admission into higher institutions across Nigeria are encouraged to purchase their ePINs on the Remita platform before the deadline and embark on an exciting journey towards a brighter future.

  • Ecobank’s EPAC Studios, artists partner on creativity 

    Ecobank’s EPAC Studios, artists partner on creativity 

    Ecobank Nigeria’s flagship media outfit, EPAC Studios is partnering  highly rated Nigerian photographers to explore contemporary photography scenes.

     The photo experience, which takes place at the Ecobank Pan African Centre (EPAC) on Ozumba Mbadiwe Avenue in VictoriaIsland, January through February is set to feature photography experts such as Kelechi Amadi, Emmanuel Oyeleke, Jokotade Shonowo, Yemi Kings and Okeffect, among others. These ace creatives will take participants on a thrilling visual journey that spans professional headshots, family shoots, valentine theme shoots as well as lifestyle and fashion. 

    Head, Marketing and Corporate Communications, Jide Sipe, said the initiative is geared towards helping customers, creatives and everyone to start the year on a visually buoyant note, freezing memories in time and creating picture perfect moments.

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    He stressed that it would be a highly engaging and interesting time for stakeholders in the photography space and the public.

    According to him, “ At Ecobank, our passion for supporting Nigerian creatives is only matched by our desire to create signature experiences built around our customer’s lifestyles”. “This is why through our flagship media outfit; EPAC Studios, we are bringing everyone together to savor the beauty and thrill of visual arts with added opportunities for learning and networking with some of the finest minds in the industry.”

    Mr. Sipe further said “We are not stopping at just photography. We have gone beyond to include videography and podcasts which we understand is rapidly becoming an integral part of our customers lives. We have themed and customized booths for customers to take all kinds of pictures with different backgrounds.” Adding that “These booths are reflective of some of the things people are passionate about i.e. our culture, nature, family etc. as well as a booth filled with inspirational quotes designed to galvanize people for the new year. Furthermore, we have also provided and optimized a recording booth for interested persons to “do their thing” whether in audio or video format”.