The Nation Newspaper

Category: Money

  • Tackling new naira notes circulation hurdles

    Tackling new naira notes circulation hurdles

    It is two days to the February 10 deadline for bank customers to deposit old naira notes in their accounts as part of the naira redesign policy implementation. The Central Bank of Nigeria (CBN) says saboteurs are limiting the circulation of the new notes to the cities and grassroots. The apex bank is, therefore, working with banks, Economic and Financial Crimes Commission (EFCC), Independent and Corrupt Practices Commission (ICPC) and Nigerian Financial Intelligence Unit (NFIU) to tackle violators of the policy and make the currency available, reports Assistant Business Editor COLLINS NWEZE.

    The Central Bank Bank of Nigeria (CBN)-led naira redesign policy was initiated to ensure that monetary policy decisions produce the right results of reducing inflation rate and achieving  exchange rate stability.

    It is expected that ensuing deflationary pressure could elicit interest rate cuts that would in the short- to medium-term boost economic activities, spur aggregate demand, and enhance output growth.

    The policy is also meant to support the efforts of security agencies in combating banditry and ransom-taking and curbing the counterfeiting N200, N500 and N1,000.

    The policy saw the redesigning of the N200, N500 and N1,000 notes and setting a February 10, 2023 final deadline for people to deposit old notes in their accounts.

    However, several hurdles are making the policy difficult for the CBN’s implementation. The biggest challenge has been the difficulty in getting the new notes.

    CBN Governor, Godwin Emefiele at the weekend blamed some bankers for sabotaging the apex bank’s efforts.

    “I assure you that the enforcement agencies are on the prowl of these unpatriotic colleagues and their collaborators. A few of them involved in the sale of the new currency have been arrested by EFCC, ICPC and indeed the DSS and let me assure all Nigerians that these unscrupulous persons shall face the full wrath of the law,” he said.

    Emefiele, therefore, asked Nigerians to show understanding in the face of acute scarcity of the new notes and pains they were experiencing.

    While the CBN ordered banks to pay N20,000 daily over-the-counter or through other channels like Automated Teller Machines (ATMs), banks are not making the funds available.

    Long queues were reported at ATMs, and banking halls across the country, with banks turning customers back at the close of business.There were also cases of poor network connectivity and excess charges for customers using Point of Sale (PoS) terminals.

    Emefiele said  the difficulty is transient given the belief that the gain of the policy to far out- way the short run pains.

    He however foreclosed the possibility of further extension of the deadline deadline.

    The deadline was extended to February 10, plus a grace of seven days amid scarcity of the new banknotes.

    At a press conference in Lagos, Emefiele admitted the hiccups in the implementation of the policy. He, however, said he would not promise a “further extension”.

    Emefiele said the apex bank was addressing “pressure areas” by redeploying cash where there are excesses. The governor dismissed the  challenges as transient, promising that the issues would be overcome soon. He urged Nigerians to embrace alternative payment channels.

    He sought the understanding of Nigerians. He decried the vandalism of bank facilities and attack on bankers. According to him, destroying bank facilities would worsen the situation.

    Emefiele said the bank and law enforcement agents would go after individuals spraying money at social events as well as bankers and CBN officials working with them.

    “Some people have been arrested. We will trace others. They must go to jail because what they doing is a criminal offence,” he insisted.

    On the scarcity, he said: “CBN is aware of the difficulty being faced by Nigerians in accessing the new currency at this initial stages of its issue and circulation but wishes to plead with all to please show some understanding  as everything is being done to correct some of the observed lapses in the implementation of this ambitious programme.”

    The programme came on the heels of directive to banks to start over-the-counter payment, capping the maximal limit at N20,000 daily.

    In many cities, PoS operators, bureau de change agents and emergency currency hawkers sell old and new notes to desperate Nigerians in need of cash.

    In Lagos, Bureau de change operators are cashing in on the scarcity by selling the new notes. An operator offered to sell N50,000 worth of new notes for N65,000 to a resident.

    At one of the PoS points in Lagos, a resident was charged N1,000 for N10,000 old notes.

    In Abuja, a PoS operator charged a resident an extra N600  for N2,000 for exchange of new notes.

    He said CBN possesses the capacity, manpower, equipment and grit to produce and circulate the new notes and are working to ease the inconvenience on Nigerians.

    “I want to use this opportunity to once again emphasise that this policy is not targeted at anyone or any group of persons. Rather it  derived from our inhouse analysis to strengthen our macroeconomic fundamentals and better our socio-economic conditions,” he added.

    Emefiele said currency management is a key function of the CBN, as enshrined in  Section 2(b) of the CBN Act 2007. Indeed, the integrity of a legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy, are some of the hallmarks of a great central bank.

    “Besides, the general practice across the globe is that a central bank should normally redesign its currency within five to eight years. From the onset of this currency redesign programme, we made it clear that for over 19 years, the CBN has not been able to undertake this important currency and liquidity management function that has important ramification for the effectiveness of monetary policy.

    “Also, we aim to increase financial inclusion in the country by reducing the number of the unbanked population. Thirdly, our aim is to support the efforts of our security agencies in combating banditry and ransom-taking in Nigeria through this programme and we can see that the Military are making good progress in this important”.

    CBN monitors banks

    The CBN team has also been monitoring banks’ compliance with the directive meant to get the new naira notes to every nook and cranny of the country.

    The Rivers State Branch Controller of CBN, Maxwell Okafor, said the apex bank is committed to ensuring that the new notes circulate well.

    He spoke after monitoring the CBN cash swap in Port Harcourt, the Rivers State capital and Igwurita in Ikwerre Local Government Area of the state at the weekend.

    He said the PoS operators remain a vital link to getting the new notes to the areas where banks do not exist.

    CBN officials led by the Director, Internal Audit Department, Mrs Lydia Alfa Ifeyinchukwu, also monitored commercial banks on the dispensing of new notes in Adamawa State.

    Expectely, the officials checked ATMs and expressed satisfaction with the level of compliance by the banks.

    In Lagos, CBN directors also monitored bank branches in Ikorodu, Matori,Victoria Island,  among others, to ensure compliance with the policy.

    Besides the exercise, the apex bank also commenced a nationwide sensitisation through the print and electronic media on the redesigned notes, including collaboration with the National Orientation Agency (NOA) to reach Nigerians across multiple channels.

    It deployed 30,000 Super Agents nationwide to assist in a Cash Swap initiative in the hinterlands, rural areas, and regions underserved by banks.

    What the policy intends to achieve

    The principal aim of the currency redesign initiative is to make monetary policy decisions more efficacious.

    They said the policy is expected to increase financial inclusion by reducing the number of the unbanked population.

    Already, experts say inflation is trending downwards and exchange rates relatively stable. 

    Data at the CBN showed that in 2015, currency-in-circulation was N1.4 trillion. But as at last October, the figure had risen to N3.23 trillion, of which only N500 billion was within the banking system and N2.7 trillion held in 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. It should also be noted that the notes in private homes and outside the banking system are not available for economic activities and thus may affect the economy attaining its potential growth,” Emefiele added.

    Customers demand improved digital services

    While the cash scarcity persists across many cities and  rural areas across the country, bank customers are facing poor network connectivity leading regular failure of digital banking platforms and scarcity of naira banknotes.

    Many of the bank customers said yesterday that they expected improved digital banking services given the level of  investments and profitability in the banking sector.

    Michael Silas-Obum, a Lagos-based mechanic, said digital payments were not meeting the expectations of customers.

    He said many customers who use banks’ Unstructured Supplementary Service Data (USSD) technology said interbank and intrabank transfers had witnessed situations where funds sent out did not get to the recipients.

    He said the CBN should insist that banks   invest more in digital infrastructure, and monitor to ensure their deployment and seamless operations.

    Adenike Fatokun, a Lagos-based entrepreneur, said she sent N10,000 through the GTBank USSD platform, and was debited but the fund never got to the recipient.

    “I sent N10,000 to a supplier through the USSD and my bank account was debited, but the customer is yet to receive the fund. I contacted the bank, which said it will take 10 working days for the transaction to be reversed and my money returned,” she said.

    According to her, other banks’ USSD and internet banking platforms are also facing similar challenges, making digital banking a nightmare for customers.

    A check at the Ajose Adeogun Lagos branches of FirstBank, GTBank, Zenith Bank and Stanbic IBTC Bank showed that they banks were not disbursing N20,000 daily to customers as directed by the CBN.

    GTBank and FirstBank had very long queues on their ATMs, with customers spending hours to make cash withdrawals.

    Martins Okon said he spent one hour before he could withdrew N10,000 from the GTBank’s ATM.

    The poor quality of services made many banks to shut down as  desperate customers continued to demand the payment of their deposits across various channels and across the counter.

    In Town Planning Way, Ilupeju, Lagos, a new generation bank shut its gates as early as 9 am to customers who couldn’t carry out transactions too.

    At Obanikoro, two new generation banks also locked their gates against customers. Angry customers gathered in front of the banks lamenting the development.

    Analysts said with the implementation of the new cashless policy and limited use of cash in the economy, the use of ATMs, PoS terminals, web payment, online transfers and even mobile money will continue to get popular in Nigeria but that the popularity should be matched with improved services that meet the expectations of customers.

  • Firm plans Innovation, capacity building for entrepreneurs

    Firm plans Innovation, capacity building for entrepreneurs

    The Adrenalina, a new co-working space in Lagos, is set to take-off with focus on facilitating innovation, collaboration and training for entrepreneurs, creatives and freelancers.

    The Adrenalina provides working spaces and collaborative opportunities for entrepreneurs, creatives, and freelancers on a subscription basis, amongst other services.

    According to  Head of Business Success Excellence, The Adrenalina, Tejumade Salami, the company delivers enterprise-centric services to emerging businesses in Africa. These include both physical and virtual spaces as office and hosting venues, infrastructure support, training, business intelligence and business support services.

    “The idea is to enable creatives, entrepreneurs and freelancers to have more enhancing environments to work, innovate and collaborate,” said Salami.

    “Beyond the services we provide, we are looking to build an ecosystem by integrating a lot of value-driving initiatives to enhance the growth and success of our subscribers.”

    Salami added that the company will host events such as book readings and seminars, and publish a periodic newsletter and podcast to educate and entertain.

    With a growing youthful population and increased connectivity to the global community via digitalization, Africa continues to experience the emergence and growth of Small and Medium Scale Enterprises (SMEs). According to the World bank, SMEs make up over 90 percent of businesses and account for over 40 per cent of the GDP in developing economies.

    In Nigeria, service-based industries like technology, media and consulting agencies continue to experience rapid growth. Co-working communities like The Adrenalina provide the vital support and infrastructure needed for these emerging enterprises.

    “We believe that Africa is rising and we want to be a significant part of this transformation by creating a community where people can work, think and collaborate for success,” said CEO, Chukwuerika Achum.

    According to Achum, the government’s role as the principal employer of labour is reducing and the highly innovative start-ups of today will play a significant role in Africa’s future.

    “We want to encourage this shift by supporting small and micro businesses in Africa through access to vital facilities, collaborations and training. In the future, we hope to help businesses get structured and connected to funding,” Achum added.

    “The Adrenalina wants to be a major contributor to the development of innovation and enterprise in Africa,” said Ayodele Arowosegbe, the company’s Marketing Consultant. “What we are creating is beyond a business. It is a community; it is a lifestyle.” The Adrenalina is set to open for business in March 2023.

  • Stanbic IBTC restates support for businesses, economy

    Stanbic IBTC restates support for businesses, economy

    Stanbic IBTC Bank has restated its commitment to support business growth in 2023 through its array of tailor-made financial solutions.

    The end-to-end financial services provider emphasised that it will not relent in its efforts to provide accessible funding for individuals and small, medium, and large-scale enterprises to grow their businesses in the new year, thereby addressing inadequate access to capital through various financing solutions.

    Targeted at businesses that need adequate funding to meet the demands of their customers, the innovative solutions provide short, medium and long-term benefits to players across different sectors of the economy.

    Speaking on the offerings, Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, noted that the solutions  will facilitate growth for  Nigerian businesses. “After the yuletide season, there is the need to re-stock, reposition and restrategise for the new year. As a forward-thinking financial institution, Stanbic IBTC Bank has remained at the forefront of providing affordable and flexible solutions to enterprises in the country.”

    Adeniyi described the Blue Blossom initiative as a unique solution for women-owned businesses to achieve their financial aspirations. A Blue Blossom account holder has access to loan facilities with competitive rates, business clinic sessions, and zero current account maintenance (CAM) fees with a minimum account opening balance of N20,000. It also comes with a reduced loan management fees.

    They also offer digital collections and payment solutions to receive payments on time and make seamless transactions. According to Adeniyi, “With C’Gate solution, merchants can accept payments via a USSD string, it can also be used on a POS terminal and online payment platform. Payment is effected by the buyer using unique preset merchant codes and concluded with the transaction codes generated by the merchant.

    “Similarly, PrimePay is the RAVE payment gateway integrated into a merchant’s existing website, and customers can complete transactions using any of the online payment options enabled. We also offer Payment Gateway Service for businesses to receive card payments directly from their websites. The NQR Payment Solution is a secure QR code-based platform for accepting and making payments for goods and services,” Adeniyi said. “We also have, coming soon, mobile enabled features and upgraded features on our enterprise online platform for our enterprise customers,” he added.

    Adeniyi enjoined business owners to leverage these solutions by opening a Business Current Account for day-to-day transactions and take advantage of the financial as well as transactional solutions designed to enable business growth.

  • Foreign investors turning to African economies, says bank chief

    Foreign investors turning to African economies, says bank chief

    Rand Merchant Bank (RMB)  CEO Emrie Brown has said that foreign investors are increasingly turning to Africa, with its vast natural resources, extensive markets, young population, and excellent technological prospects.

    The African Continental Free Trade Area agreement will also ease access into Africa, stimulate intra-regional trade and boost growth.

    According to Brown: “The new office will link investors in the United States with Africa’s extensive business opportunities.

    As an established, on-the-ground corporate and investment bank with offices across the African continent, we understand the challenges and regulatory environments for business success in Africa. We are particularity well-placed to drive investment into the continent thanks to the advisory expertise we have developed since RMB’s establishment in 1984.”

    Brown added that the bank will work with US-headquartered multinational corporations with African subsidiaries, non-governmental corporations, as well as US corporates with no African presence that intend to engage in business or establish themselves in Africa.

    Albert Maartens, who heads up the US operations, said that the new office will enable RMB to spend more time with key corporate and institutional decision-makers and facilitate assistance to and communication with US corporates looking to expand into Africa.

    Said Maartens: “RMB will be able to act as trusted adviser for our existing and future US clients so that they can take advantage of our innovative product offerings within the environment in which they wish to operate. As a division of FirstRand Bank, we can offer investors longer tenors due to our large capital base, access to deep expertise on the continent, an impeccable compliance record and due diligence skills and processes that are firmly in place.”

    RMB’s product and services offering will include the full spectrum of corporate and investment banking products such as M& advisory, lending, equity and debt capital markets, custody, foreign exchange (FX), derivative hedging instruments and cash management. These will be offered across multiple sectors and industries in sub-Saharan Africa, such as mining and minerals, logistics, consumer goods, fintech, healthcare, energy and infrastructure.

    “RMB has exceptional talent, focused on providing clients with distinctive service and deep African expertise. We are passionate about entrenching ourselves in the new jurisdictions in which we choose to operate – and about having a positive impact on the business of our clients we serve,” concluded Brown.

  • PMI report shows private sector business growth softening

    PMI report shows private sector business growth softening

    The Nigerian private sector registered a slight loss of growth momentum in January, Purchasing Managers Index (PMI) report has shown.

    It said output and new business continued to rise markedly, but at softer rates than at the end of 2022.

    According to the report, on a more positive note, firms raised employment at the fastest pace since June 2018 as part of efforts to complete work on time.

    On the price front, rates of inflation of input costs and output prices softened in January, but remained elevated.

    The headline figure derived from the survey is the Purchasing Managers’ Indexª (PMI¨). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

    The headline PMI dipped to 53.5 in January from 54.6 in December. Although still signaling a solid monthly strengthening of the private sector and the thirty-first in consecutive months, the rate of improvement was the softest since August 2022.

    Business activity increased at a much slower pace at the start of the year, despite the rate of growth remaining marked. The latest rise was the weakest in five months. Demand continued to improve, but some firms reported a moderation in customer numbers. Activity increased across each of the four broad sectors covered by the survey.

    The rate of expansion in new business also softened in January, but remained sharp nonetheless, again reflecting higher demand from customers.

    A desire to try and complete projects on time led companies to ramp up their hiring activities at the start of the year. Employment increased at a solid pace that was the fastest since June 2018.

    Despite expanded staffing levels, backlogs of work increased for the first time in three months. Firms reported having been hindered by issues with machinery and power supply.

    Higher workloads and positive expectations regarding the outlook for activity led companies to expand their purchasing activity sharply again, with the rate of growth unchanged from December. In turn, stocks of purchases also rose further.

    Efforts to secure inputs were helped by improving supplier performance. Competition among vendors, quiet road conditions and prompt payments all contributed to a shortening of delivery times, and one that was the most pronounced in four months.

    The rate of input cost inflation softened for the second month running in January and was at a one-year low. The slowdown in overall cost inflation largely reflected a softer rise in purchase prices, albeit one that was still substantial.

  • IFC, Union Bank partner on trade finance for SMEs

    IFC, Union Bank partner on trade finance for SMEs

    To boost access to finance for smaller businesses in Nigeria and to support increased trade, IFC yesterday  announced a partnership with Union Bank of Nigeria Plc to help the bank expand lending to hundreds of businesses operating in critical sectors in the country, including food, healthcare, manufacturing, and services.

    IFC’s $30 million loan will allow Union Bank to increase trade financing and working capital lending to Nigerian businesses, including those whose cashflows have been strained by recent disruptions in global and local markets.

    “As a bank, we are deeply committed to enabling success for SMEs. We understand the critical role of small businesses in leading Nigeria’s economy towards growth. This funding from IFC will enable us to extend financial relief to our customers during this difficult time. I am confident that the funds will help these businesses harness opportunities, and preserve jobs,” said Mudassir Amray, Managing Director and Chief Executive Officer of Union Bank.

    “Strengthening supply chains and trade flows through working capital financing sets the stage for faster growth and economic diversification in Nigeria. IFC’s partnership with Union Bank is part of a wider strategy to ensure the flow of goods and services are sustained despite global trade disruptions,” said Kalim M. Shah, IFC Senior Country Manager for Nigeria, Liberia and Sierra Leone.

    The loan facility to Union Bank is being made through IFC’s COVID-19 Emergency Response Working Capital Solutions Envelope, which was launched in 2020 to provide funding to existing IFC clients in emerging markets that will then extend new loans to companies affected by the economic impacts of COVID-19.

    Recent disruptions to the global economy following COVID-19, including from rising inflation and limited access to finance, have left many businesses in Nigeria, particularly SMEs, struggling with supply chain shortages, increased cost of doing business and limited trade growth.

    The partnership with Union Bank underscores IFC’s commitment to supporting smaller businesses in Nigeria, helping them preserve and create jobs, and access critical inputs.  

    The loan announced today is supported by the blended finance facility of the International Development Association’s Private Sector Window, which mitigates the financial risks associated with investments in sectors like SMEs and agribusiness.

    IFC has an active investment portfolio of $2.3 billion in Nigeria – the second largest in Africa after South Africa – across sectors including agribusiness, healthcare, manufacturing, infrastructure, technology, and financial services.

  • Bank empowers women entrepreneurs

    Bank empowers women entrepreneurs

    Delta State Government has lauded the commitment of Heritage Bank Plc in its support towards the economic empowerment of vulnerable and poor women across the State.

    Delta State Governor, Ifeanyi Okowa, while delivering the keynote address gave this submission at the 4th Phase of Women Empowerment Skill Acquisition Programme (WESAP) in Asaba, Delta State.

    Okowa who was represented by his wife, Dame Edith Okowa hinted that the State Ministry of Women Affairs has empowered over 1,460 women across 25 Local Government Areas in different phases from 2020 till date. This is inclusive of the 325 beneficiaries who are being equipped with tools today after intensive training to perfect their skills to lift them out of poverty and enhance their participation in the economy.

    “Empowering our womenfolk is an integral part of this administration’s economic policies, which prioritizes the poor and vulnerable. Since we came on board in May 2015, we have undertaken several measures through the Ministry of Women Affairs, Community and Social Development to lift our women out of poverty and enhance their participation in the economy,” he stated.

    He also decried the marginalisation of women, especially in politics and the economic sector, whilst stating that women yet remain indispensable vehicles for creating wealth, boosting the economy, and building more stable families in their multiple roles as mothers and community leaders.

    “I am confident that the 325 women (beneficiaries) in the following skills: Confectionaries, Makeover/Headgear (Gele) tying, Decoration/event management, Hair Dressing, Fashion/Design that are being empowered today will make the State Government proud and will bring good returns on investment,” Okowa affirmed.

  • Naira redesign: More bank customers embracing cashless banking

    Naira redesign: More bank customers embracing cashless banking

    Many activities have continued to define the Central Bank of Nigeria (CBN)-led naira redesign policy, which saw the  emergence of new N200, N500 and N1,000 bank notes and an increase in the number of customers adopting the cashless banking initiative. It has also presented opportunities for bank customers to deposit old naira notes at their banks for exchange on or before the February 10, 2023 deadline.The N2.7 trillion cash mop up targeted in the exercise is expected to enhance CBN’s cash management systems and boost monetary policy decisions, writes Assistant Business Editor COLLINS NWEZE.

    Issues around cashless banking and cash management are topical these days. Not so before now.

    That explains the interest the Central Bank of Nigeria (CBN)-led naira redesign policy has generated across  the society in recent months.

    From people at the grassroots to high networth individuals and companies, the ongoing naira redesign policy and move by the CBN to phase out N200, N500 and N1,000 old bank notes and ensure adequate circulation of the newly redesigned notes has attracted diverse reactions.

    CBN Governor, Godwin Emefiele, gave an insight to the expected impact of the policy on the financial system and economy. He said N1.9 trillion has been mopped up from the economy with N900 billion more cash deposits expected to be in the banks by the end of the February 10, 2023 deadline set for people to return old notes to the banks.

    He said the extension of previous deadline of January 31, was to  give Nigerians that have naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped money at the apex bank for exchange.

    Also, those who still have the old notes after February 10 will enjoy a seven-day “grace period” to deposit them directly with the CBN.

    “There is also a seven-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,” Emefiele said.  The CBN boss added that in 2015, currency-in­-circulation was only N1.4 trillion. But as at last October, it had risen to N3.23 trillion; out of which only N500 billion was within the banking industry and N2.7 trillion held 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 programme, we have collected about N1.9 trillion; leaving us with about N900 billion,” he said, adding that to achieve effective distribution of the new currency, the CBN has took some steps.

    Steps taken so far

    The CBN has 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 include 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,” he said.

    The apex bank also commenced a nationwide sensitisation 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 Nigerians across multiple channels.

    It 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 among us can swap/exchange their old notes.

    It equally deployed its staff, particularly the Assistant Directors, Deputy Directors and Directors in Abuja, to CBN branches to join the mass mobilisation and monitoring, working with the Deposit Money Banks, agents and Branch controllers across the 36 states.

    This is meant to ensure compliance with its guidelines issued for smooth implementation of the programme.

    “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  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 per cent 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 sensitisation team exercise.

    “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 programme and we can see that the Military are making good progress in this important task in Nigeria,” Emefiele stated.

    CBN monitors exercise

    The  CBN monitoring team recently visited the several banks’ branches in Epe, Lagos; Computer village, Ikeja and Lagos Island, among others, to ascertain the level of compliance by banks.

    One of the cardholders, Tunde Kabir, said the policy is laudable, but appealed to the CBN and banks to make the new notes available.

    “Once the ATMs are dispensing cash, and the new notes are readily available, the challenges that come with new policy change will be addressed,” he said.

    Speaking during the CBN’s sensitisation on the new naira notes in Epe, CBN Deputy Director Governor’s Department, Moses Ademosu, said any bank that loads old notes would be sanctioned. 

    He said the apex bank is monitoring the ATMs to ensure compliance because the February 10 deadline for returning old notes to the banks is sacrosanct. 

    The CBN team also visited Oluwo Modern Fish Market , Epe, and several ATMs to ensure old notes were not dispensed.  

    Also, CBN Deputy Director, Reserve Management Department, Mohammed Solaja, said the apex bank is committed to making the new notes available.

    He said the notes had been supplied to the banks, and the CBN is working to ensure that the notes are available. 

    CBN Deputy Director, Other Financial Institutions Supervision Department, Mrs. Monsurat Vincent, said people would gain more by embracing cashless banking. 

    She said the ultimate goal of the CBN is to ensure that people begin to carry out their transactions electronically to save cost and resources. 

    Speaking during the CBN’s team visit, the Paramount Ruler of Epe Land, Oba Kamorudeen Animashau, appealed to the CBN and banks to make the new notes more available to the people.  Oba Kamorudeen said the many people, especially the low-income earners, avoid e-payment channels because of the huge charges that they attract, which the apex bank should look into, to build confidence in the people. 

    He appreciated the government and the CBN and the team for the work they do. He promised to  take the message to his people in 54 villages in Epe through the town criers so that the villages will know about government stand as regards to the old notes. 

    Other analysts said despite the risks of e-payment use, the policy comes with benefits to the naira and curbing inflation.

    President, Bank Customers Association of Nigeria (BCAN), Uju Ogunbunka, said the policy is good given the benefits that come from cashless banking, but its  timing and implementation are not practicable based on  weak IT infrastructure on ground.

     He said the CBN has good intention and should, therefore, encourage banks to strengthen their IT infrastructure to provide seamless services to the people.

    Findings showed that most banks in the Federal Capital Territory  (FCT) have increased the volume of new notes they dispense. Also in Lagos, more ATMs are dispensing cash, although long queues are still available.

     At the Garki 2 branch of First City Monument Bank (FCMB), the Automated Teller Machines (ATMs) were seen dispensing new notes and a staff member of the bank confirmed to The Nation that they dispense more new notes.

     It was a similar story at Sterling Bank, Central Business District. The Nation observed that the ATMs were dispensing new notes, a development confirmed by a staff member who said “the bank is dispensing more new notes”.

     At Zenith Bank on Ralph Sodehinde Street, behind the Federal Ministry of Finance, the two ATMs were dispensing new notes when The Nation visited the branch.

    Emefiele had said banks had been instructed to ramp up the volume of new notes they feed into their ATMs.

     According to him, “we mandated them and said no more payment of new notes over the counter which gives the opportunity for it to be given to friends but pay  new notes through the ATM which is a robot and everybody has to queue to get it and that has worked”.

     He also confirmed the Nigeria Security Printing and Minting Company (NSPMC) was still printing more new notes to supply to banks.

     During a visit to some banks’ branches in Lagos, it was observed that more customers were embracing cashless banking by completing forms to activate their ATM cards, and mobile banking platforms.

    Nancy Onyeka, a customer of FirstBank, said: “I am activating my ATM card because that is the way to go. It’s obvious that cashless banking is where the future of the banking system is. I do not want to be left behind,” she said.

    Banks are also advising their customers to use alternate channels like PoS, internet banking, web payment, among others, to carry out their transactions.

    CBN’s currency management role

    Emefiele said: “As you may be aware, currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007. Indeed, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

    “In recent times, however, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.”

    The challenges, he said, included hoarding of banknotes by the public, with statistics showing that over 80 per cent of currency in circulation was outside the vaults of commercial banks.

    He added that the worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability as well as, increasing ease and risk of counterfeiting evidenced by several security reports were reasons for redesigning the notes.

    The CBN chief noted that although global best practice was for central banks to redesign, produce and circulate new local legal tender every five to eight years, the naira has not been redesigned in the last 20 years.

  • UBA appoints  Bawuah as CEO for Africa operations

    UBA appoints  Bawuah as CEO for Africa operations

    The Board of Directors of the United Bank for Africa Plc, yesterday appointed Mrs. Abiola Bawuah, as Chief Executive Officer (CEO) of UBA Africa. 

    Bawuah will also join the Group Board as an Executive Director, overseeing its operations on the African continent. 

    UBA operates in 19 African countries beyond Nigeria, in addition to global operations in New York, London, Paris and the UAE. 

     Bawuah, a Ghanaian  national, is the first female CEO of UBA Africa.  Her appointment further demonstrates UBA’s commitment to diversity.  The UBA Group Board has eight female Directors. 

     Prior to her appointment, Bawuah was Regional CEO, West Africa, supervising the Group’s operations in nine subsidiaries, including Benin, Burkina Faso, Cote d’Ivoire, Ghana, Guinea, Liberia, Mali, Senegal, and  Sierra Leone.  She previously held the role of CEO, UBA Ghana. 

    Abiola has contributed significantly to the growth of UBA Africa for close to a decade. She brings a wealth of experience in commercial banking, and stakeholder engagement. It also gives me great pleasure that with her appointment, the UBA Group Board has now become a majority female board.” 

    The UBA Group also announced  the following executive roles: Chris Ofikulu becomes the Regional CEO, UBA West Africa. Ofikulu, who has over two decades of banking experience spanning corporate, commercial, and retail banking. 

     Uzoechina Molokwu will take on the role as Deputy Managing Director (DMD) of UBA Ghana.  He is the Executive Director, Business Development – UBA Côte d’Ivoire. 

     Ayokunle Olajubu will be the Managing Director/CEO UBA Liberia. He comes with 30 years’ banking experience in Nigeria and other African countries, including Sierra Leone, Cote D’Ivoire and the Gambia. 

    Theresa Henshaw has been appointed as CEO of UBA UK. She was the DMD, Business Development, UBA America and joined the Group as ED, Business Development at UBA UK. 

    Usman Isiaka, CEO, UBA Sierra Leone, will be the Deputy CEO in UBA America. 

     Adeyemi Adeleke, the former CEO of UBA, UK is the Group Treasurer. 

    UBA has announced the retirement of High Chief Samuel Oni, an independent non-executive Director, from the Board following the expiration of his tenure.  He joined the UBA Group in January 2015 and served on the Board of the Group for eight years. 

    The Group Chairman Mr. Tony Elumelu expressed his appreciation to High Chief Oni, for his commitment, leadership and extensive contributions to the UBA Group and on behalf of the Board, wishes him the best in his future endeavours. 

  • CRC Credit Bureau gets three directors

    CRC Credit Bureau gets three directors

    The Board of Directors of CRC Credit Bureau Limited has appointed three Directors across the group.

    They are Niyi Ajao (Independent Non-Executive Director), Mrs. Funmi Adedibu and Mrs. Helen Maiyegun (Non-Executive Directors).

    He is the founder/CEO of Digital Finance Solutions Nigeria Limited. 

    Mr. Ajao  was Executive Director and later the Deputy Managing Director of Nigeria Inter-Bank Settlement System (NIBSS) Plc.

    He holds a Bachelor’s degree and an Executive MBA from Obafemi Awolowo University, Ile-Ife. He is a Honorary Senior Member, Chartered Institute of Bankers of Nigeria (CIBN), Life member of the Institute of Directors (IoD, and several other professional bodies. He is an alumnus of the Lagos Business School, and the Wharton Business School, University of Pennsylvania.

    Mrs. Adedibu is a lawyer  with over 25 years’ legal practice and banking.

    She is the Group Company Secretary and General Counsel of the FCMB Group Plc.

    Mrs Adedibu attended several Leadership and Management training from Harvard Business School, Queen’s School of Business Canada, Lagos Business School as well as Euromoney Loan Documentation and Advanced Loan Documentation Training in New York.

    She is a member of the Nigerian Bar Association (NBA), International Bar Association (IBA), Life member, Institute of Directors (IoD), an Honorary member, Chartered Institute of Bankers of Nigeria (HCIB) and Toastmasters International.

    She obtained a Bachelor’s degree in Law from the Obafemi Awolowo University and Master’s degree in Law from the University of Lagos. She attended the Nigerian Law School.

    Mrs. Maiyegun is a banker with over 26 years’ experience.

    She is the Regional Head, Lagos 1Region, Lagos and West Directorate, at Keystone Bank.

    She holds a Bachelor’s and Master’s degrees in Psychology from Universities of Jos and Lagos.

    She has attended several courses, including Leadership for Senior Managers, Dubai, UAE (2013), Women on Board Development, IE Business School, Madrid, Spain (2015) and Executive Decision Making, University of California, Berkeley, United States.

    Mrs. Maiyegun served as a Non-Executive Director in Keystone Bank Sierra Leone. She is the Chairperson of the Keystone Bank’s Women Economic Empowerment Committee (KWEEC), an initiative of the Central Bank of Nigeria. She is also a Faculty Member at the Keystone Bank Learning Academy.

    The Chairman, CRC Credit Bureau, Mr. Olusegun Alebiosu, stated: “I am certain that the new directors will put their vast wealth of experience at the disposal of the Board as they join other highly experienced Directors to take the company on its next phase of growth and expansion.”