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  • Nigeria’s banking system resilient, safe, says CBN

    Nigeria’s banking system resilient, safe, says CBN

    The Central Bank of Nigeria (CBN) yesterday said Nigerian banking sector remains resilient, safe, and sound.

    The clarification follows certain publications and social media reports containing misleading information regarding the operations of a regulated financial institution.

    In a statement, CBN like all other regulated institutions, the institution referenced in these reports is held to stringent regulatory requirements, and there is no cause for concern regarding the safety of depositors’ funds.

    “The Bank affirms that it continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision. These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system,” the statement said.

    The apex bank urged the public to disregard sensational or unverified claims and rely solely on official channels for information about the financial system.

    “The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system,” she added.

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    While the CBN did not mention any specific bank, the statement comes amid a swirl of social media and online reports suggesting that Fidelity Bank may be facing financial instability following a Supreme Court ruling.

    Reports circulating online claimed that the Supreme Court had ordered Fidelity Bank to pay N225 billion in damages in connection with a long-standing legal dispute inherited from a defunct institution. The news sparked public speculation about the bank’s financial health, with suggestions of a potential insolvency.

    In response, Fidelity Bank issued a statement via its official social media handle to address what it described as “misleading reports.”

    The bank clarified that the case involves a legacy transaction from 2002, when the now-defunct FSB International Bank provided a loan to construction firm G. Cappa Plc.

    “We would like to address recent misleading reports regarding a court judgment involving the defunct FSB International Bank, which have wrongly suggested that Fidelity Bank is facing bankruptcy,” the bank stated. “These claims are unfounded.”

    Fidelity Bank maintained that it remains financially strong and fully capable of meeting all its obligations. The bank is currently seeking clarification on the Supreme Court judgment to determine its financial implications, and reiterated its confidence in its sound financial position.

    “We take these malicious reports seriously and are committed to protecting our bank’s reputation and the interests of our stakeholders,” the statement read. “Fidelity Bank continues to operate as one of Nigeria’s most capitalized financial institutions, with no risk of bankruptcy.”

    The bank also referenced its recent financial performance, noting that its Q1 2025 results demonstrate a solid capital base and sustained profitability.

    “We remain focused on our core values and are fully dedicated to supporting our customers and communities. Thank you for your continued trust in Fidelity Bank,” the statement concluded.

    The situation has attracted attention across Nigeria’s financial landscape, with regulators and operators calling for restraint in the dissemination of sensitive financial information. As the CBN and Fidelity Bank continue to engage with the public, industry watchers note that confidence in the financial system remains crucial to long-term economic stability.

  • Nigeria’s non-resident banking and push for global financial inclusion

    Nigeria’s non-resident banking and push for global financial inclusion

    For a long time, Nigerians living abroad have faced significant hurdles in engaging with their home country’s financial system. Opening bank accounts, investing in local markets, and sending money home were often fraught with high fees and bureaucratic complexities, creating a disconnect between their cultural and emotional ties and their financial participation. This is now changing with the introduction of the Non-Resident Bank Verification Number (NRBVN) platform by the Central Bank of Nigeria (CBN), Assistant Editor Nduka Chiejina reports

    Launched in Abuja by the Central Bank of Nigeria (CBN), in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), the Non-Resident Bank Verification Number (NRBVN) represents a significant technological advancement aimed at integrating diaspora Nigerians into the national financial ecosystem.

    CBN Governor Olayemi Cardoso said this initiative marked the beginning of a journey towards full digital financial inclusion for all Nigerians, irrespective of their location. The NRBVN signifies that Nigeria’s financial system is becoming truly borderless, offering its citizens abroad access without the need for physical presence.

    This platform is more than just a policy change; it’s a strategic move to place financial inclusion at the forefront of Nigeria’s economic diplomacy. The NRBVN provides a digital gateway for a previously underserved demographics, enabling them to access banking services as easily as residents within Nigeria.

    A major obstacle for diaspora Nigerians was the lack of a Bank Verification Number (BVN), which excluded them from essential financial activities. The NRBVN resolves this by offering a fully digital, remote verification process, eliminating the need for in-person visits and bureaucratic delays. Analysts have praised this as a crucial step towards embracing digital finance and recognizing the vital role of diaspora remittances in Nigeria’s foreign exchange stability.

    Removing long-standing barriers

    The CBN’s NRBVN platform directly addresses and eliminates key barriers that have historically prevented diaspora Nigerians from actively participating in the country’s financial growth. This initiative is about ensuring rights, dignity, and inclusion, not just convenience.

    CBN officials have stated that the NRBVN will enable Nigerians abroad to open and operate bank accounts, send and receive remittances, invest in various financial instruments, and support development initiatives from their international locations.  Cardoso pointed out the significant reduction in time and financial costs, especially for those in remote areas. Access to Nigeria’s financial services is now a matter of digital efficiency rather than costly travel.

    Dismantling legacy obstacles

    The NRBVN systematically tackles seven deeply entrenched challenges that have long hindered the financial integration of diaspora Nigerians. Previously, opening a Nigerian bank account required physical presence, an impractical demand for those living abroad. The NRBVN introduces a secure remote digital verification process. In addition, banks operated with limited interfaces for diaspora engagement. The NRBVN now acts as a single digital gateway, providing comprehensive access to the Nigerian banking ecosystem, including account management and customer support.

    Diaspora Nigerians faced complex documentation and verification processes that deterred investment. The NRBVN, working with the Non-Resident Nigerian Investment Account (NRNIA), offers a transparent channel for investments in various sectors with full repatriation rights. Another obstacle addressed by the NRBVN is that before now, sending money home incurred high fees and lacked transparency. The NRBVN promotes secure, cost-efficient remittance channels under CBN supervision, aiming to lower costs and increase transparency, with a target of $1 billion in monthly inflows.

    Financial products often didn’t cater to the unique needs of diaspora residents. The CBN is now directing banks to create bespoke products, such as multi-currency savings plans and diaspora mortgages. Frequent policy shifts and poor communication bred mistrust. The NRBVN framework is designed to be predictable and investor-friendly, drawing on successful models from countries like India and Pakistan. Distance hindered direct contributions to Nigeria’s growth. The NRBVN now enables structured participation, allowing diaspora funds to support local industries and infrastructure.

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    Learning from global best practices

    Managing Director, Access Bank Plc, Mr. Roosevelt Ogbonna, noted that the NRBVN platform draws inspiration from countries like India, Pakistan, and Mexico, which have successfully leveraged diaspora remittances for SWecoSWWSWnomic development. These nations he said have established accessible and secure systems that attract significant inflows. While Nigeria’s current annual remittances exceed $20 billion, there is potential to grow, learning from India’s over $83 billion annual inflow.

    The success of these countries lies in their integrated financial systems that include their diaspora. “In Kazakhstan and Tajikistan, remittances can account for nearly 30 percent of GDP, showing the significant impact diaspora contributions can have on household consumption, investment, and national savings, supporting Nigeria’s trillion-dollar economy ambition” he said.

    Nigerian banks and fintech partners, Ogbonna disclosed, are developing tailored solutions for the diaspora, focusing on key global markets and understanding the motivations behind remittances, which primarily include family support, investment, savings, education, and property acquisition.  The NRBVN is designed to support these diverse needs.

    Backed by a holistic framework

    The NRBVN is part of a broader financial framework that includes the Non-Resident Ordinary Account (NRO) and the Non-Resident Nigerian Investment Account (NRNIA). These accounts provide diaspora Nigerians with access to savings, transactions, and investment opportunities across various sectors, including equities and infrastructure. They also facilitate access to mortgages, pensions, and insurance designed for non-resident needs.

    Cardoso described the immense potential of engaging with over 20 million economically successful Nigerians abroad, viewing the NRBVN as a key to unlocking opportunities for both the diaspora and Nigeria’s development. “The assurance of full repatriation rights for investors using these accounts aims to build trust and encourage sustained engagement” Cardoso explained.

    This comprehensive strategy, combining digital identity access with integrated financial products, positions the CBN as a facilitator of inclusive financial development, signalling a new era of engagement with Nigerians abroad.

    Safe, regulated, and compliant

    The NRBVN platform is built with a strong focus on security, adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. Mr. Philip Ikeazor

    Deputy Governor, Financial System Stability Directorate of the CBN called the system a benchmark in identity verification, noting its advanced integration of identification data, exceeding current domestic standards, with robust data protection and privacy measures.

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    From a regulatory standpoint, he said “the NRBVN supports Nigeria’s financial integrity goals, including efforts to exit the FATF grey list”. Its transparency and structure are seen as crucial for enhancing Nigeria’s global financial standing. The Special Adviser to the Governor on Compliance Ms. Shola Philips noted that the NRBVN sets a high standard for integrating technology with institutional credibility.

    Boosting remittance flows and innovation

    Recent policy reforms have already positively impacted remittance inflows, increasing from $3.3 billion in 2023 to $4.73 billion by year-end. With the NRBVN, the CBN targets $1 billion in monthly inflows. CBN Governor, Cardoso, credited reforms like the willing buyer, willing seller regime for this upward trend and expressed confidence that the NRBVN will further boost these figures through increased trust.

    The CBN is also encouraging Nigerian banks and inviting international money transfer operators (IMTOs) and fintech firms to integrate with the NRBVN platform to enhance access and trust.  TapTap Send described the NRBVN as a game-changer, enabling larger transactions beyond typical remittances by fostering trust and reducing foreign exchange (forex) impact concerns. The firm  anticipates a doubling of remittance inflows, redirected towards long-term investments like property and businesses.

    Ogbonna added that the five main drivers of diaspora remittances are family support, education, investments, real estate, and philanthropy. Banks and fintechs he said are developing innovative solutions to cater to these needs, such as platforms for direct payment of family expenses, bank-to-broker systems for capital market investments, affordable housing schemes, and trusted channels for charitable giving.

    Committed to Lower Remittance Costs

    The CBN says it is committed to reducing the high remittance costs in Sub-Saharan Africa, which average over 7.0 per cent.  Cardoso has stressed the urgency of this issue, engaging with international bodies like the World Bank to find solutions. The NRBVN is seen as part of the journey towards more affordable and efficient remittance channels, requiring collaboration among regulators, banks, fintechs, IMTOs, and the diaspora community. Lowering these costs will enhance the appeal of formal channels and amplify the socio-economic impact of diaspora funds.

    A bridge to Nigeria’s global citizens

    At its core, the NRBVN is a bridge connecting Nigerians abroad with their home country, representing a bold step towards an inclusive financial ecosystem.  Cardoso summarized the intent behind the initiative. “By enhancing connectivity, trust, and access, the NRBVN aims to redefine the role of diaspora communities in Nigeria’s economic future” he said.

    The launch of the NRBVN signals a strategic shift in how Nigeria views and engages with its diaspora. Economic analyst and Managing Director, Ambosit Capital Managers, Dr. Wahab Balogun described it as a much-needed modernization of the remittance and diaspora investment ecosystem, with the potential to resolve long-standing hurdles and build confidence among diaspora Nigerians.

    He noted that the success of the NRBVN will depend on the response of financial institutions and reforms in the remittance value chain.

    He said: “If supported by attractive products and policy continuity, it could become an economic passport for global Nigerians, unlocking billions in capital flows”.

    Balogun also mentioned the need for seamless, secure, and beneficial experiences for non-resident Nigerians.

    In conclusion, the NRBVN represents a significant step forward in Nigeria’s efforts to engage its diaspora, aligning with global trends and potentially transforming the landscape of financial inclusion and economic development.

  • CBN, NIBSS launch remote BVN platform

    CBN, NIBSS launch remote BVN platform

    The Central Bank of Nigeria (CBN), in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), has launched the Non-Resident Bank Verification Number (NRBVN) platform.

    The new platform enables Nigerians living abroad to obtain their Bank Verification Numbers (BVNs) remotely—without needing to be physically present in Nigeria.

    This initiative is expected to significantly boost diaspora remittances, well and truly above the $4 billion monthly target. With easier access and reduced costs, projections suggest remittances could quadruple in the coming months.

    Speaking during the unveiling ceremony held in Abuja on Tuesday, CBN Governor Olayemi Cardoso described the launch of the NRBVN as a milestone in expanding access to the Nigerian financial system for citizens abroad.

    He noted that the new digital infrastructure would address longstanding barriers many Nigerians overseas face when attempting to access financial services back home.

    “For too long, many Nigerians abroad have faced difficulties accessing financial services at home due to physical verification requirements,” Cardoso said. “The NRBVN changes that. Through secure digital verification and robust Know Your Customer (KYC) processes, Nigerians worldwide should now be able to access financial services more easily and affordably.”

    The platform offers a digital gateway that not only simplifies identity verification but also creates new channels for diaspora participation in Nigeria’s formal financial ecosystem.

    Read Also: Cardoso: NIBSS plans BVN platform for Nigerians in diaspora

    Cardoso noted that the project was not a one-time solution but part of a broader effort to evolve a seamless, inclusive financial architecture. Banks, fintech firms, and International Money Transfer Operators (IMTOs) are being urged to integrate with the system and help scale its impact.

    Remittance flows through formal channels have been on the rise. From $3.3 billion in 2023, inflows increased to $4.73 billion in 2024, largely driven by recent reforms, including the “willing buyer, willing seller” foreign exchange policy. With the launch of NRBVN, the CBN is optimistic about achieving its $1 billion monthly remittance target and unlocking new levels of foreign exchange inflow.

    “We are building a secure, efficient, and inclusive financial ecosystem for Nigerians globally. This platform is not just about financial access—it’s about national inclusion, innovation, and shared prosperity,” Cardoso added.

    Also speaking at the event, the Managing Director/Chief Executive Officer of NIBSS, Mr. Premier Oiwoh, said the NRBVN platform will allow Nigerians abroad to remit money home from the comfort of their homes, eliminating the need for informal or potentially unsafe methods.

    “Today, in some parts of London, people still use roadside kiosks to send money to Nigeria,” Oiwoh said. “With this platform, that era is over. From your living room, you can send money directly to your Nigerian account—faster, more securely, and at a lower cost.”

    He noted that 27 Nigerian banks have already been integrated into the NRBVN portal, enabling users to open domiciliary accounts remotely. These accounts allow Nigerians abroad to manage savings, process transfers, and access other services without physical contact.

    The MD also stressed that the platform would help cut down the high cost of remitting money to Sub-Saharan Africa, which remains among the most expensive corridors globally.

    “Trust and convenience are key,” Oiwoh added. “We believe this system will build confidence among users and increase formal remittance volumes. Our goal is to bring more Nigerians into the fold and make remittances cheaper and more transparent.”

    The NRBVN is part of a broader policy suite that includes the Non-Resident Ordinary Account (NROA) and Non-Resident Nigerian Investment Account (NRNIA). These instruments are designed to facilitate diaspora access to savings, mortgages, insurance, pensions, and investment products in Nigeria’s financial and capital markets. Nigerians abroad will continue to retain the right to repatriate the proceeds of their investments under prevailing regulations.

    The new system has been developed in accordance with international standards, incorporating comprehensive Anti-Money Laundering (AML) safeguards and Know Your Customer (KYC) protocols. Every NRBVN enrollment is subject to rigorous digital verification processes to prevent fraud, illicit flows, and identity theft—helping to maintain the credibility and stability of Nigeria’s financial infrastructure.

    According to Cardoso, “The platform is a strategic lever for strengthening the integrity of our financial system while simultaneously providing global Nigerians with more reasons to engage confidently with the Nigerian economy.”

    By extending banking access to Nigerians across borders and aligning remittance systems with digital innovations, the CBN and NIBSS have taken a decisive step toward unlocking the full economic potential of the diaspora. With continued engagement and system refinement, the NRBVN platform is poised to become a cornerstone of Nigeria’s long-term financial inclusion and economic growth agenda.

  • Beware of fraudulent offers, CBN warns

    Beware of fraudulent offers, CBN warns

    The Central Bank of Nigeria (CBN) has raised fresh concerns over the circulation of fictitious offers of contracts, loans, grants, intervention funds, and other financial benefits falsely linked to the Bank.

    In a statement released yesterday by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank disclosed that despite issuing a public advisory on November 18, 2024, fraudulent schemes continue to target unsuspecting Nigerians under the pretense of official CBN authorisation.

    According to the statement, individuals and groups have been parading themselves as agents or representatives of the CBN, claiming to offer access to lucrative contracts and funding opportunities purportedly backed by the institution.

    “The CBN wishes to reiterate that it has not authorised, licensed, or appointed any individual, group, or organisation to act as an agent or intermediary in offering contracts, financial grants, or intervention funds to the public.”

     The CBN also does not endorse or support such claims in any form,” she said.

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    She clarified that the Bank does not award contracts or distribute funds via unsolicited channels such as emails, SMS, phone calls, WhatsApp messages, or any other social media platform. Additionally, the Bank does not charge fees in exchange for contracts or grants, nor does it engage intermediaries to facilitate access to financial interventions.

    The statement cautioned members of the public to remain vigilant and avoid engaging with anyone presenting such fraudulent offers. Instead, victims or potential targets are encouraged to promptly report such incidents to law enforcement agencies or visit the nearest CBN branch for guidance.

    She stated that the apex bank remained committed to protecting the financial interests of Nigerians and is collaborating with security agencies to investigate and address the spread of these deceptive activities.

    The bank urged the public to rely solely on official CBN communication channels for accurate information and to exercise caution when approached with unsolicited financial proposals bearing the Bank’s name.

  • CBN rolls out measures to sustain FX inflows amid falling oil prices

    CBN rolls out measures to sustain FX inflows amid falling oil prices

    The Central Bank of Nigeria (CBN) has continued to establish strong measures to attract more dollars into the economy and reduce the negative impact of ongoing crude oil prices drop on domestic economy. Despite the impact of oil prices on macroeconomic stability, the current CBN leadership is supporting export of local products to earn more FX revenue, championing backward integration principles to reduce import of items that can be produced locally and simplifying dollar remittances for Nigerians in diaspora. These measures have continued to act as buffers for Nigeria’s FX position, support naira rally and keep inflation under check, writes Assistant Editor COLLINS NWEZE

    Global oil prices have dropped significantly, now hovering just above $60 per barrel. For an oil-dependent economy like Nigeria, this continued decline in crude prices presents a serious concern rather than a relief. The Wall Street Journal’s grim forecast that Brent crude could fall below $50 per barrel by the end of 2025 only deepens the urgency for strategic policy responses.

    At a benchmark of $50 per barrel and a production capacity of 1.5 million barrels per day (mbpd), Nigeria’s oil revenues would fall approximately 10 percent short of its fiscal breakeven point. Such a shortfall could push the fiscal deficit to between six and seven percent of GDP, potentially fuelling inflationary pressures and weakening macroeconomic stability.

    However, the Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, has proactively initiated measures aimed at cushioning the domestic economy against the looming oil price shock. Among these are policies to boost Nigeria’s non-oil export potential, strengthen backward integration to reduce dependence on imported goods, and streamline diaspora dollar remittances to enhance foreign exchange inflows.

    Drawing from China’s economic strategy, the apex bank said Nigeria’s competitive exchange rate can drive export-led growth. To harness this potential, businesses are expected to adopt export-oriented strategies by targeting sectors with strong export potential such as agriculture, manufacturing and creative industries; implement import-substitution models by strengthening domestic production capabilities and reducing reliance on costly imports; and focus on value addition by shifting from exporting raw materials to processed goods, thereby boosting foreign exchange earnings.

    Cardoso said Nigeria’s creative sector has potential to attract $25 billion annually to the economy, highlighting the untapped opportunities in Nigeria’s expanding creative sector, including music, film, crafts and digital exports. He urged businesses to explore international markets, digital platforms, and global tours to increase dollar revenue inflows. The CBN boss also recently advised telecom companies to reduce their dependence on foreign imports by producing key components of their inputs locally. The backward integration proposal for the telecom industry comes at a time the real sector is in dire need of sustainable growth. The CBN boss gave insights on what the economy stands to gain from backward integration in the telecoms sector.

    Speaking in Abuja during a visit by the Airtel Africa management team led by Group CEO Sunil Taldar, the CBN Governor underscored the importance of boosting local production to ease pressure on the dollar, generate employment and strengthen the national economy. He emphasised the urgent need to domestically manufacture key telecom inputs—such as SIM cards, cables, and towers—that are currently being imported in large volumes.

    Cardoso highlighted that over the past 16 months, the CBN has taken deliberate steps to stabilize the foreign exchange market, strengthen the naira, and attract investor confidence. With these foundations now in place, he urged telecommunications companies to embrace backward integration as a strategic imperative. In response, Airtel Africa CEO Sunil Taldar commended the CBN’s reform efforts and voiced strong support for local production, noting that such a shift would ultimately yield long-term benefits for the telecommunications industry. He also reaffirmed Airtel’s commitment to expanding financial inclusion across Nigeria through innovative technology solutions.

    Meanwhile, market analysts observed that the renewed interest of Foreign Portfolio Investors (FPIs) in Nigeria’s FX market—fuelled by improved investor confidence, a more transparent foreign exchange framework, and strengthening macroeconomic indicators—alongside the CBN’s continued market interventions, is expected to sustain the stability of the naira in the months ahead.

    Understanding telecoms sector

    According to the Nigerian Communications Commission (NCC), the total active telephony subscribers increased by 3.2 per cent month/month to 164.93 million in December 2024. The increase reflects the gradual recovery in the subscriber base following the conclusion of the NIN-SIM linkage program by mobile service providers in September. 

    Analysing the market share by operators, MTN Nigeria led by 51.4 per cent (with 84.61 million subscribers), Airtel Nigeria followed with 34.4 per cent (56.62 million subscribers), Globacom with 12.2 per cent (20.14 million subscribers) and 9mobile with 2.0 per cent (3.28 million subscribers). At the same time, the total number of internet subscribers rose by two per cent month/month to 139.28 million in December.

    Looking ahead, analysts at Cordros Securities said they expect subscriber base recovery through SIM reactivation initiatives, especially from market leaders – MTN Nigeria and Airtel Nigeria. According to the National Bureau of Statistics (NBS) third quarter 2024 Gross Domestic Product (GDP) report, the Information and Communication sector, is made up of Telecommunications (telecoms) and Information Services; Publishing; Motion Picture, Sound Recording and Music Production; and Broadcasting.

    Views from stakeholders

    The Executive Secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbolahan Awonuga, noted that beyond telecom operators, other entrepreneurs and business leaders also have a vital role to play by investing in the local manufacturing of essential components used in telecommunications operations. He said: “We have to look inwards and get Nigerian companies to produce these key components in telecom operations locally. Government also has a role to play, by ensuring that key infrastructure especially power is available. We do not want a situation where locally produced inputs, will become more expensive than imported versions.” Awonuga added that telecom sector plays key roles in banking services, including enabling digital payments and ensuring security of transactions. He said banking and telecom sectors have more to gain if backward integration thrives in the country, adding that government has significant role to play to make the move a success. 

    Research Head, Cowry Asset Management Limited, Charles Abuede, said the CBN governor’s call was to discourage the importation of foreign services into Nigeria, especially when efforts can be made to develop such services locally. “The high demand for foreign exchange by telecom operators has further pressured the naira due to increased demand for the dollar. However, with adequate infrastructure development and a conducive operating environment facilitated by regulators, these challenges can be mitigated,” he said. 

    According to Abuede, “given Nigeria’s FX policies, illiquidity in the foreign exchange market and infrastructure deficits, I think increased investment in the telecom sector would enable operators to embrace backward integration. This would allow them to manufacture key components, such as SIM cards, locally. As a result, production costs could decline—provided the operating environment remains stable. This will improve profit margins and enhance both top-line and bottom-line growth in the long run.”

    The CBN under Cardoso has carried out several efforts to improve the functioning of the FX market. This has led to good results with average daily turnover in the Nigerian Autonomous Foreign Exchange Market increased by 226 per cent in the first half of last year when compared to the same period in 2023. Foreign portfolio inflows have increased by over 72% during this period, while foreign exchange reserves have risen from $32bn in May 2023 to over $40bn. This represents the equivalent of eight months’ import cover and marks the highest reserve level in nearly three years.

    The market has also supported over $9bn in capital outflows over the past year as investors were able to freely repatriate capital and dividends without the need to wait for several months as experienced in the past. These results, Cardoso said, reflect improved confidence in the reforms he embarked on. “In addition, we witnessed a $6 billion current account surplus in the first half of 2024 as a result of the impact of these reforms. Reduction in petroleum product imports supported by improved domestic refining capacity, a growing focus on non-oil exports and higher remittance inflows helped to support the positive current account balance,” he said.

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    Also, an enabling policy environment has led to a doubling of monthly remittances from an average of $300mn in 2023 to nearly $600 million in August 2024. “We are committed to further integrating the Nigerian diaspora into our financial system, exemplified by the introduction of the non-resident Bank Verification Number registration. We expect our financial institutions to develop products that not only enable the diaspora to support their families but also provide opportunities for savings and investment in Nigeria,” he said.

    Diaspora remittances inflows to rise

    As part of its efforts to boost diaspora remittances and support naira stability, the CBN recently announced the introduction of two new financial products designed to serve Nigerians living abroad. The Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account was created to streamline remittances, encourage investments, and foster financial inclusion among Nigerians in the diaspora. It said, “The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account targeted at Nigerians in diaspora.”

    The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, explained that diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. He CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year. Gwadabe said remittances in the economy are expected to increase based on CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.

    In a report: “Diaspora remittances: The power behind Africa’s sustainable growth”, Regional Vice President of Africa at Western Union, Mohamed Touhami el Ouazzani, said remittances may be measured through the movement of money, but their real impact is measured in lives changed. He disclosed that in 2023 alone, $90 billion flowed into Africa from its global diaspora, an amount that rivals the Gross Domestic Product of entire nations.

    He said that remittances symbolise deep ties that keep communities connected across borders. “Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability.

    “Beyond their immediate impact, remittances are powerful drivers of economic change. They fuel infrastructure development, spur entrepreneurship, and promote financial inclusion – all essential for long-term economic development. Ghana’s National Financial Inclusion and Development Strategy (NFIDS) is simplifying access to remittances, while countries like Kenya, Ethiopia and Nigeria are tapping into diaspora bonds to fund infrastructure and other national projects,” he added.

    For remittances to be truly transformational, it begins with understanding and meeting people’s aspirations. Ensuring individuals who strive for more can send and receive funds, regardless of their financial status, is crucial. We must cater to diverse needs.

  • CBN warns against fraudulent contract, grant offers

    CBN warns against fraudulent contract, grant offers

    The Central Bank of Nigeria (CBN) has raised fresh concerns over the circulation of fictitious offers of contracts, loans, grants, intervention funds and other financial benefits falsely linked to the Bank.

    In a statement on Monday by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank disclosed that despite issuing a public advisory on November 18, 2024, fraudulent schemes continue to target unsuspecting Nigerians under the pretense of official CBN authorisation.

    According to the statement, individuals and groups have been parading themselves as agents or representatives of the Central Bank, claiming to offer access to lucrative contracts and funding opportunities purportedly backed by the institution.

    “The CBN wishes to reiterate that it has not authorised, licensed, or appointed any individual, group, or organisation to act as an agent or intermediary in offering contracts, financial grants, or intervention funds to the public. The CBN also does not endorse or support such claims in any form,” Ali said.

    Read Also: CBN’s financial results signal renewed stability, economic confidence

    She clarified that the Bank does not award contracts or distribute funds via unsolicited channels such as emails, SMS, phone calls, WhatsApp messages, or any other social media platform. Additionally, the Bank does not charge fees in exchange for contracts or grants, nor does it engage intermediaries to facilitate access to financial interventions.

    The statement cautioned members of the public to remain vigilant and avoid engaging with anyone presenting such fraudulent offers. Instead, victims or potential targets are encouraged to promptly report such incidents to law enforcement agencies or visit the nearest CBN branch for guidance.

    Ali stated that the Central Bank remains committed to protecting the financial interests of Nigerians and is collaborating with security agencies to investigate and address the spread of these deceptive activities.

    The Bank urged the public to rely solely on official CBN communication channels for accurate information and to exercise caution when approached with unsolicited financial proposals bearing the Bank’s name.

  • Reps summon finance, budget ministers, CBN gov over non-payment of contractors

    Reps summon finance, budget ministers, CBN gov over non-payment of contractors

    The House of Representatives on Thursday summoned key government officials to explain the prolonged delay in the payment of local contractors for completed projects since 2024.

    Those summoned include the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Atiku Bagudu; Accountant-General of the Federation, Babatunde Ogunjimi; Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso; and the Auditor-General of the Federation, Shaakaa Chira.

    This resolution followed the adoption of a motion of urgent public importance moved by Hon. Nnamdi Ezechi (APC, Delta), who decried the failure of Ministries, Departments and Agencies (MDAs) to pay contractors for certified projects completed since October 2024.

    The House directed the invited officials to appear before it on Tuesday, May 13, 2025, to explain the reasons behind the non-payment and to present a clear timeline for settling all verified outstanding obligations.

    The House also mandated its Committees on Public Accounts and Budget and Economic Planning to conduct a joint probe into the systemic failures that have hindered the disbursement of funds meant for contractor payments.

    The committees were also tasked with investigating lapses in accountability among MDAs responsible for processing payments and are expected to report back within four weeks with their findings and legislative recommendations.

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    He expressed concern that budgetary releases under the 2024 financial year to MDAs remain below 50 per cent, resulting in widespread project abandonment, financial distress among contractors, and an overall negative impact on the economy.

    According to him, the non-payment has severely hindered the implementation of critical constituency projects, undermined public confidence in government delivery, and weakened investor trust in the nation’s infrastructure sector.

    He said the delay in payment to contractors has resulted in job losses, stalling of infrastructure development, and disruptions to community-based projects across the federation, adding that if left unchecked, the situation could lead to mass protests, legal disputes, and complete paralysis of public projects.

  • CBN opens new chapter with ‘open banking’

    CBN opens new chapter with ‘open banking’

    SIR: After years of anticipation, the Central Bank of Nigeria (CBN) has finally approved the rollout of open banking, with full implementation expected in August 2025. While it may sound like just another regulatory move in the ever-evolving financial system, this is anything but ordinary. In fact, it has the potential to fundamentally change how Nigerians interact with their money—and each other.

    Open banking marks a shift in power. For decades, banks have acted as gatekeepers to our financial data. They see what we spend, how often we save, and where our money goes. But until now, that information has been locked in silos. If you banked with multiple institutions—as most Nigerians do—each one had only a narrow view of your financial story. The bank where you pay bills might see you as reckless, while the one where you invest sees you as disciplined. Neither has the full picture. And that fractured understanding often works against you.

    Open banking changes the game. It allows you to permit financial institutions to share your data securely through a standardised interface (called APIs), and manage your consent using tools like your Bank Verification Number (BVN) or National Identification Number (NIN). You decide who can see what, and for how long. This is not just a technological leap—it’s a mindset shift. You are no longer just an account holder; you are now the gatekeeper of your own financial narrative.

    What does this mean in real life? Imagine you want to take a loan. With open banking, you could permit the lender to access not just your salary account, but also your savings and investment history from other banks. That single act could improve your credit profile, help you qualify for better rates, and eliminate redundant paperwork. Or say you’re trying to budget better—your finance app could pull data from all your accounts, helping you see a holistic view of your spending patterns and financial health in one place.

    This isn’t a theory. These are the kinds of solutions we’ve seen evolve in countries like the UK and Australia, where open banking has increased financial inclusion, enhanced innovation, and empowered consumers to make more informed choices. Nigeria is now the first African country to take this bold step—and the timing couldn’t be more critical.

    In a country where the average person juggles multiple financial apps, banks, and platforms—without any real integration—open banking promises to simplify, streamline, and personalise money management. Whether it’s setting up automatic investments between your bank and your asset manager, or enabling easier identity verification when signing up for a digital wallet, the benefits are wide-reaching.

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    Of course, no innovation comes without risk. Cybersecurity will need to be front and centre. With the right guardrails—like the CBN’s central registry of licensed participants and consent frameworks tied to your BVN—open banking can be implemented securely. But the responsibility also falls on us, the users, to stay vigilant. Know who you’re granting access to. Understand what they can do with your data. Don’t give away your keys blindly.

    More than anything, open banking signals a return to choice and competition. It breaks down the walls between institutions and puts customers at the centre. It’s the kind of reform that creates space for better products, more transparent pricing, and ultimately, a fairer financial ecosystem.

    If you’ve ever felt like your bank doesn’t understand you—or like your financial life is scattered across apps and statements—open banking is your invitation to take back control. It’s not just about money. It’s about visibility, consent, and power.

    August 2025 may still seem far off, but the shift has already begun. As banks, fintechs, and asset managers prepare to integrate, we should be doing the same: getting informed, asking questions, and reimagining what control over our financial life really looks like.

    • Oler Oladele, Founder, The Money Wit Club
  • CBN puts up OMO Bills for subscription to refinance N240bn maturing bills

    CBN puts up OMO Bills for subscription to refinance N240bn maturing bills

    Central Bank of Nigeria (CBN) has opened fresh open market operations (OMO) bills to foreign portfolio investors and authorised local deposit money banks (DMBs) for subscriptions at the primary market as about N240 billion was set to mature.

    The monetary authority is in the process of conducting additional open market operations worth N500 billion across standard maturities on Tuesday, reinforcing its stance on tightening system liquidity amid persistently elevated levels.

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    This move is in line with efforts to sustain positive real returns, especially as headline inflation prints at 24.23%, Erad Partners Limited said in a note.

    The firm said with the Nigerian Treasury bills auction scheduled for Wednesday, market participants are keenly watching to see if today’s OMO issuance will drive yields higher across the curve. In May, the market anticipates total inflows from FGN bonds, Nigerian Treasury, and OMO bill maturities to reach N3.45 trillion.

    “The interplay between liquidity absorption and yield repricing remains in focus — the market awaits direction,” Erad Partners chief investment officer said in the note. OMO maturities of N239.150 billion, and it appears the monetary authority has become aggressive with OMO auctions again.

    “After an initial slowdown in the first quarter, the CBN conducted OMO auctions twice in April. In the last three weeks, the authority has opened OMO bills for subscriptions three times – partly to drive foreign currency inflows into the economy and manage liquidity.

  • CBN grants direct FX access to Pan-African payment settlement system

    CBN grants direct FX access to Pan-African payment settlement system

    The Central Bank of Nigeria (CBN) has announced changes to the foreign exchange sourcing and documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria.

    These updates are aimed at facilitating smoother and more efficient cross-border transactions within Africa.

    According to a statement issued yesterday by the Acting Director of Corporate Communications, Hakama Sidi Ali, Authorized Dealer Banks (ADBs) are now permitted to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, eliminating the need for recourse to the CBN. This measure is expected to improve liquidity and enhance the speed of settlement processes for cross-border payments.

     The revised guidelines are contained in the “Revised Documentation Requirements for PAPSS,” issued in Abuja, and take immediate effect.

    Other key provisions introduced include the certification of all export proceeds repatriated via PAPSS by the relevant processing banks. This requirement aims to maintain regulatory compliance and ensure transparency in international trade transactions.

    Furthermore, a new, simplified documentation process has been introduced for low-value transactions. Individuals undertaking transactions up to $2,000 (or its equivalent in naira) and corporate entities with transactions up to $5,000 can now rely on basic Know-Your-Customer (KYC) and Anti-Money Laundering (AML) documents previously submitted to their banks. However, transactions exceeding these thresholds must comply fully with documentation requirements as stipulated in the CBN Foreign Exchange Manual and related circulars.

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    In addition, applicants are now expected to ensure that all regulatory documents required for the clearance of goods are readily available. This responsibility shift is designed to expedite trade processing and strengthen accountability among cross-border traders.

    According to Mrs. Sidi Ali, these adjustments are part of CBN’s ongoing efforts to promote seamless intra-African trade, drive financial inclusion, and enhance operational efficiency for Nigerians participating in cross-border transactions within the continent.

    PAPSS, launched in January 2022 by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, operates as a centralized platform for payment and settlement of transactions across Africa.

    By enabling payments in local currencies, the system reduces dependency on third-party currencies, lowers transaction costs, and supports the rapid expansion of trade activities under the AfCFTA framework.

    The Central Bank of Nigeria, through a circular referenced TED/FEM/PUB/FPC/001/006 dated April 28, 2025, detailed these changes and encouraged banks across the country to fully adopt PAPSS for originating transactions.

    Exporters, importers, and individuals have been advised to familiarize themselves with the new requirements and leverage the opportunities provided by PAPSS to carry out efficient, secure, and cost-effective cross-border payments within Africa.

    The latest directive is expected to strengthen Nigeria’s participation in the continental trade framework and boost economic integration efforts across African markets.