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  • Forex: CBN mulls reopening of RDAS window

    Forex: CBN mulls reopening of RDAS window

    The Central Bank of Nigeria (CBN) is expected to reopen the Retail Dutch Auction System (RDAS) official window it shut last February as battle to save the naira and foreign exchange reserves intensifies.

    Chief Economist, Africa Global Research at Standard Chartered Bank, Razia Khan, hinted at the weekend, that the apex bank was under pressure to re-open the two-way interbank forex trading.

    In a report: “When perception is not reality” obtained by The Nation, the analyst explained that given the current perceived market shortage of dollar, a re-opening of the market is likely to see dollar-naira trade higher.

    She said the ‘negative watch’ period for the continued inclusion of Nigerian bonds in the widely tracked GBI-EM index was extended in June, to allow the new government the time to formulate policy.

    “Unless interbank determination of the forex rate is reintroduced, with a resulting improvement in forex liquidity, Nigeria risks being excluded from the GBI-EM index. Failure to re-open the FX market may deter direct investment as well. Few foreign investors are ready to commit new investment to Nigeria ahead of an forex adjustment that they believe to be imminent,” she said.

    Khan said Nigeria’s changing economic fundamentals call for a rethink of forex policy, in order to better absorb external shocks.

    “We see Nigeria’s current account surplus moving to a deficit, both in 2015 and in the years ahead. The pace of accumulation of new forex reserves will not easily support a fixed exchange rate system.

    With a fixed exchange rate, forex reserves rather than the naira bear the brunt of any external shock, hurting Nigeria’s creditworthiness, and potentially raising the cost of any external borrowing,” she predicted.

    The economist said the risk is that the longer it takes to re-open the forex market, the greater the likelihood of forex overshooting when conditions do eventually normalise.

    She said the debate over forex policy would continue to take centre-stage in this quarter, culminating in a reopening of the interbank forex market, and a likely move higher in the dollar-naira exchange rate. “The authorities, mindful of other reform priorities and the need to limit inflation, are unlikely to favour naira depreciation for its own sake. These reform priorities include a probable doubling of the rate of Value Added Tax to 10 per cent in order to boost state government revenue, as well as some form of fuel subsidy adjustment,” she said.

    The CBN had after series of measures aimed at arresting the sustained fall in naira value, announced the closure of the RDAS thereby leaving the interbank foreign exchange market as the only official foreign exchange market.

    The decision became necessary given the wide gap between the rates at the CBN official exchange market and the interbank market; a development which analysts said largely fuelled the current speculative activities in the foreign exchange market in the country.

    The RDAS or official forex window allows banks and other authorised dealers to place bids on behalf of individual clients who qualify to buy forex at the official auction.

    Unlike the Wholesale Dutch Auction System (WDAS) scrapped in September 2013 over widespread abuse, the

     

  • In defence of CBN forex policy

    The CBN would facilitate the creation of an ecosystem that will identify and link various local producers and processors with major importers of selected products. With the expected increase in local production, identified major importers would be encouraged to act as off-takers to local producers.”

    These were the words of the Central Bank of Nigeria’s Governor, Mr. Godwin Emefiele, while unveiling his 10-point agenda during his maiden world press briefing after assuming office on June 5, 2014. He had promised that under his leadership, the apex bank will dissipate its energies on building a resilient financial system that can serve the growth and development needs of our beloved nation, Nigeria.

    The bank, a few days past, announced that 40 items of goods that Nigerians have capacity to produce and in which we have the human and natural resources have been removed from the forex window. This decision gave bite to the mission statement of the CBN “to be the Model Central Bank delivering price and financial system stability and which will promote a sustainable economic development”.

    The import of the decision by the bank to officially stop the sale of dollars and other foreign currencies to importers of rice, cement, palm kernel/palm oil/vegetable oil products and steel sheets, among others, should not be lost on us.  Essentially, it is to galvanise the economy, boost local production and grow the economy.

    This, indeed, is a warming signal to make Mr. Emefiele’s vision not only a reality, but the determination of the CBN as a development institution to grow the economy, as well as enhance the capacity of local entrepreneurs to create employment and wealth, thereby reducing pressure on the naira and protect the nation’s foreign reserves.

    He further said that whosoever is desirous of importing such goods, should use his own money to do so. Aside depleting the national reserves and easing the pressure on the naira as some of the reasons for the action, empowering local entrepreneurs and creating jobs is what Nigeria needs now, as her growing unemployment rate is alarming. Secondly is the resuscitation of local industries.

    Recent developments in the world’s oil market is another reason one could adduce for the CBN’s action which made imperative the clamour for diversifying the economy away from dependence on oil. It is baffling to note thatNigerian businessmen have been creating jobs and wealth in other nations, while theirs wallow in poverty when these imported goods can be produced in Nigeria. But unfortunately, they have contributed in killing the local industries. Many factories are in comatose or have shutdown with attendant job loss.

    In the case of rice, Nigeria has greater and better capacity to meet local demand. The immediate past Minister of Agriculture and Natural Resources, Dr. Akinwumi Adesina recently put Nigeria’s importation bill of four items at about N1.6 trillion yearly. This should be worrisome to a nation with over 170 million people, not to mention her numerous natural resources that if harnessed, can feed not only Nigeria, but Africa.

    Emefiele while addressing the media on this latest development, looked visibly angry that Nigeria in the 21stcentury, imports toothpick. This indeed is a shame. Preference for foreign products is the reason why many of our industries are not doing well, or are shut.

    According to him, the pressure on the naira and gluttonous demand by Nigerians for foreign goods, is one of the reasons why the naira has to be devalued late last year.

    Sharp practices, mindless speculation and rent seeking in the foreign exchange market were responsible for the closure of the RDAS/WDAS foreign exchange window by the CBN, so was the bank’s action on dollarisation of the economy in which it cautioned those who take pleasure in using dollars as medium of payment for goods and services.

    Nigerians should therefore see the decision by the CBN as clearly restating Mr. Emefiele’s vision which he drew from the bank’s mandate to pursue both price and financial system stability, as well as provide complementary developmental functions by creating favourable environment for Nigerians to live better and be more fulfilled in life.

    Benchmarking this paradigm shift against other policies ever taken by the bank, it was a surprise to read in the media various criticism of the exemption, particularly the one from Lagos Chamber of Commerce and Industries (LCCI), an organisation that had in the past praised the CBN under Emefiele.

    Agreed that the latest action may bring a temporary dislocation and disruption in the system as we all know, the long run effect and impact on the economy, and what Nigerians and the economy will benefit, should be paramount.  LCCI was quoted to have said that many of the products on the list are intermediate goods and critical inputs for the manufacturers, and other major sectors of the economy. It also argued that the Bureaux de Change sub-sector which ought to serve as alternative source of foreign exchange window for businesses, is not deep enough to meet the demand of the essential intermediate products on the exclusion list. Its chairman, Alhaji Remi Bello, was quoted to have concluded that the action by the CBN amounted to import prohibition which will create hic-up in the economy. On this, I beg to disagree.

    The CBN is ready and willing to support the real sector of the economy, but not the toothpick, tooth paste and tomato sauce importers. Our local capacities to produce and meet our needs are available, and massive, if only Nigerians can appreciate and be patriotic enough to patronise home-made goods.

    The preference and crave for imported goods is killing or have killed many industries. This action may look painful in the interim, however, it will give vent to many intervention support of the bank to grow the economy, particularly, in agriculture, power, health, oil and gas, among others. Locally made goods have been tested and confirmed to be better in quality than their foreign counterparts, if only we will appreciate ourselves.

    The CBN’s new order therefore will help check the drain on the national reserves and reduce the undue pressure on the naira, thus making it strong. Nigeria and most importantly, in this critical time needs to look inward. Ghana, Nigeria’s neighbour has also expressed her intension to announce some items to be removed from her forex window.

    These are reality times. Every nation is on soul-searching, wondering on how they got to where they are today, and Nigeria should not be an exception. We should by now be feeding ourselves. We have the capacity and the resources.

    Thus, Nigerian investors and business men should embrace this patriotic move of the CBN and partner with the CBN. The end result of this development is employment, wealthcreation, self-sufficiency and boost in Nigeria’s gross domestic product.

    We need to grow our productive capacity, and encourage particularly, the rice producers who have shown great capacity not to only feed Nigeria but Africa at large.  The steel sector – Ajaokuta Steel Rolling Mills, Oshogbo Steel Rolling and Aladja Mills can be revived to meet the nation’s steel requirements. The Dangotes in cement production, the furniture makers need to be supported and encouraged, so are the local fish farmers. Youth commercial agricultural scheme established to draw energeticand enterprising youths to farming should be made more attaractive to achieve set goals, not the portfolio carrying investors disguising as businessmen, but engage in rent seeking and round tripping, veiling their criminal activities by importing toothpicks, toothpastes or tomato pastes and destroying our localproduction potential and economy.

    The CBN is commended for this, the management is however enjoined to match its word with action by ensuring that infractions of this directive is severely punished and not pander to the pretentious critics who meant no well for this country.

  • CBN extends BVN deadline till October 31

    CBN extends BVN deadline till October 31

    •Pro-democracy group threatens class action 

    The Central Bank of Nigeria (CBN) has extended the deadline for the Bank Verification Number (BVN) till October 31.

    A statement from the CBN said the decision was due to “the passionate appeals from the public for the extension of the deadline for the Bank Verification Number (BVN) for the biometric registration exercise” after the expiration of the earlier deadline yesterday.

    The CBN said it “noticed with satisfaction the level of compliance among the banking public and also acknowledged the difficulties which the people have gone through in the last few days in the quest to beat the registration timeline. More so, arrangements are being made to enroll bank customers in Diaspora in the next few days”.

    To this end, the CBN said it “considered it necessary to grant extension for the exercise to enable all bank customers to enroll in the BVN and to facilitate hitch free completion”.

    However, before the CBN announced the extension, a pro-Democracy Non-governmental organisation – Human Rights Writers Association of Nigeria (HURIWA) “condemned the decision of the Central Bank of Nigeria to subject Nigerian account holders to untold hardship because of the deadline unilaterally imposed on the so called Banks Verification Number.”

    Customers also invaded the banks to try to meet the deadline.

    HURIWA called for “the registration to be permanent and seamless rather than being undertaken in a military fashion”.

    HURIWA urged the CBN Governor, Mr Godwin Emiefiele “to either make the BVN registration a continuous exercise or be prepared to face avalanches of class law suits and other Civil disobedience strategies to be worked out by like minded human rights activists all across Nigeria.”

    Many in Asaba, the Delta State capital yesterday visited their banks to beat the bank verification exercise.

    Traders in Onitsha and its environs also thronged branches of commercial banks to meet the deadline.

    A correspondent of the News Agency of Nigeria (NAN) who visited most banks in Onitsha metropolis on Tuesday, observed a large number of customers queuing for registration.

    NAN reports that the number of customers undergoing the process was more in old generation banks compared to their new generation counterparts.

    Some of the customers on the queue complained that the process was to slow due to internet connectivity problems; they, therefore, appealed to the CBN to extend the registration period.

    Mr Nnamdi Okoro, a businessman, told NAN in one of the old generation banks, that most of the customers had arrived the bank as early as 8 a.m., but only a few had completed the exercise at about noon.

    “All other process of the exercise had been smooth except the actual biometric and fingerprint capturing as well as confirmation from the system,” Okoro said.

    Chief Donatus Ezike, the Secretary, Plastics and Allied Products Market, Onitsha, appealed to the CBN to see the need to extend the exercise in order to accommodate millions of people not captured before the deadline.

    “I must commend the bank staff for their wisdom to communicate their difficulties to us, the customers; but it is clear with this difficulties that the CBN should see the need to extend the date,” Ezike, who banks with an old generation bank, said.

    Mr Tony Chukwurah, a staff of one of the new generation banks, said that customers had been given more than enough time to do the exercise as most banks had put out advertisements to reach their customers.

    Chukwurah, however, expressed the hope that the CBN would extend the date to accommodate those who had genuine excuse for not participating in the exercise before now.

    “This would be an eye opener for Nigerians to take civic and public exercises serious as it ought to be,” he said.

    NAN reports that the CBN introduced the BVN registration to check banking fraud associated with multiple account operation by an individual with different names, addresses and other identities.

  • CBN, ALGON, others begin negotiation over $3.2b judgment against Fed Govt

    CBN, ALGON, others begin negotiation over $3.2b judgment against Fed Govt

    The Central Bank of Nigeria (CBN) yesterday said it has commenced settlement talks with beneficiaries of two judgment of $3,188,079,505.96 given against the Federal Government of Nigeria (FGN) by a Federal High Court in Abuja in favour of the Association of Local Governments of Nigeria (ALGON), its consultant, Linas International Limited and some others.

    The other beneficiaries of the judgments are: Phil-Tech Nigeria Limited, Riok Nigeria Limited, XI Nigeria Limited, Snecou Group of Companies Limited, Wells Procurement Services Limited, Systematic Engineering Limited, Prince Orji Nwafor–Orizu and Bello Olaitan Busayo.

    The companies were allegedly awarded contracts by ALGON for the provision of health care and security services in all local governments.

    A recent investigation report commissioned by the Nigeria Governors’ Forum (NGF) raised doubt over the legitimacy of both judgments.

    The report doubted the conduct of the Attorney General of the Federation (AGF), the Minister of Finance and Accountant General of the Federation, who were defendants in the case.

    It revealed how the AGF, the Minister of Finance and Accountant General of the Federation did  not defend both suits, which sought to deprive the country huge sums of money, raising questions about the actual motive behind the suits.

    ALGON and Linas  challenged the alleged Federal Government’s  unilateral withdrawal of funds from the Federation Account, the fund the London Club debt buyback of 1992 and London Club debt exit payment of 2006.

    They argued that government’s deployment of the funds for the payment of foreign debt without the consent of the other tiers of government contravened the provision of Section 162(1), (3), and (5) of the Constitution.

    The plaintiffs urged the court to order the refund of $3,188,079,505.96 to them; order the defendants to pay 20 per cent of the money to Linas through its lawyers as consultancy fees; and that the court should order the defendants 15 per cent of all amount due to the Local Governments ‘for utilisation on security and health care delivery all over the Federal Republic of Nigeria’.

    Defendants in the suit were the Federal Government of Nigeria, the Attorney General of the Federation (AGF), the Minister of Finance and Accountant General of the Federation.

    Linas however, filed a separate suit against the Attorney General of the Federation (AGF), the Minister of Finance and Accountant General of the Federation, ALGON and 180 local governments (who were part of the plaintiffs in the initial case).

    The company claimed it was entitled to N1 million per local government and another 20 per cent of the $3,188,079,505.96 being claimed by the plaintiffs in the case over the foreign debt deduction, as its consultancy fees.

    Since the defendants did not defend the case, Justice Adeniyi Ademola granted the plaintiffs’ prayers in both cases in the judgments given on December 3, 2013. The defendants also failed to appeal, prompting the plaintiffs to commence garnishee proceedings against the FGN. So far, the court has granted four garnishee orders against the FGN.

    At the resumption of hearing in the garnishee proceedings, yesterday, prosecuted by Linas’s counsel, Joe Agi (SAN), CBN’s lawyer, Ms. Ozeigbe Omo-Egharevba, told the court  that representatives of the CBN, the Accountant-General of the Federation and the judgment creditors met on Monday.

    “Representatives of the CBN and the Accountant-General of the Federation met with the representatives of the plaintiff yesterday (Monday) to see how we can explore an out of court settlement of the case,” Omo-Egharevba said, but was silent on the details of the meeting.

    Lawyer to the judgments’ beneficiaries, Chief A. Akunebu, said he could neither confirm nor deny what the CBN’s lawyer said.

    He said the plaintiffs’ lead lawyer, Joe Agi (SAN), who could confirm whether or not such settlement effort was ongoing was not yet in court.

    Justice Ademola shifted proceedings till later in the day when Agi was available to confirm the development. Further hearing in the case has been fixed for July 6.

     

  • CBN laments ‘poor’ mobile money growth

    The Central Bank of Nigeria (CBN) has admitted that its mobile money expectations have not been met.

    CBN Director, Banking Payment Department, and Chairman, Nigeria Electronic Fraud Forum (NeFF), ‘Dipo Fatokun, who made  this known at NeFF meeting in Lagos, said although progress has been made, the target remains has not been met.

    In his words: “It is not correct that we have not made progress in mobile money. It is right that our expectations on mobile money has not fully been met and probably because we were very ambitious in setting the target”.

    He regretted that most of the mobile money transactions are for subscription payment, and remittances, like mobile wallet sending money to account in the bank, or account in the bank sending money to mobile wallet.

    Fatokun said the mobile money space started in Nigeria about two years ago, adding that about 21 Mobile Money Operators have already been licensed. “What we have discovered is that the slow growth is a result of lack of agency, adding that for mobile money to be successful, you must have agents. “The CBN did report setting up some conditions on agency banking which the mobile money operators are keying into,” he said.

    “We have also released a guideline on super agent structure. We expect that some of the telcos, if not all, will serve as super agents. Two of the telcos already have our approval in principle, to make their agents available for mobile money”.

    Speaking on the NeFF 2014 annual report with the theme: e-Fraud: Fighting the battle, winning the war, which was also launched at the event, Fatokun said Nigeria needs to put necessary controls in place to avoid fraud in the e-payment space.

    “We have articles there to open the eyes of the public on how to stop electronic fraud. It will help you on what you need to avoid if you want your account to be safe,” he stated.

    He said the assessment of the e-payment industry is that the value and volume of electronic transactions in e-payment has been on the increase, stating however that the value and volume of fraud, though globally is on the increase, is on the decline in Nigeria because of so many controls in place.

  • Will CBN extend BVN registration deadline?

    Will CBN extend BVN registration deadline?

    The rising fraud cases in the financial sector and the need to protect customers’ transactions got the Bankers’ Committee thinking of a way out. So, it was not surprising that the Committee collaborated with the CBN, deposit money banks, Nigeria Interbank-Settlement System (NIBSS) to inaugurate a centralised biometric identification system tagged Bank Verification Number (BVN).

    The enrolment deadline which ended yesterday means that over 16 million customers may be shut out of the banking system unless the deadline is extended.

    NIBSS, which guides the operational modalities of the project, says it will act if the CBN decides to extend the deadline for customers to register.

    But before yesterday’s deadline, stakeholders, including banks, urged their customers to come and register. The Consumer Right Awareness Advancement and Advocacy (CRAAAI) urged Nigerians to go and register for their BVN. Registration deadline was yesterday.

    The Chairman of the CRAAAI, Mr. Moses Igbrude, who spoke at a stakeholders’ forum on identity management in the economy, organised to enlighten Nigeria, said identity management is a broad administrative area that deals with identifying individuals in a particular system.

    He listed the system to include a country, a network, or an enterprise and controlling their access to resources within that system by associating, user rights and restrictions with the established identity.

    He added that the role of technology in modernising the banking sector has witnessed a paradigm shift from the traditional methods of banking to digital channels which involve enormous levels of electronic data capture (EDC) of customer’s information. “Everybody needs security; if people are identified before they commit any crime, the person will be identified easily.

    Many of the bank customers who spoke with The Nation said they wanted to deadline extend by at least six months. Moses Abiola, a customer of one of the new generation bank said all bank customers should be allowed to register. He said customers should not be punished because there are many challenges that made it difficult for them to register. “I visited my bank several times to register but they complained of poor network. I know that many other customers had similar experience,” he said.

    Maurice Okafor, a business woman base in Lagos also said there were no nearby registration centre for her to register. She said bank should increase the number of registration centre to capture more customers. “I think the places where people can register are very few. Maybe, if  there more registration centre, more people will register,” she said.

    Another customer, James Chukwu said he filed to register because the process was too tedious. “What of all the data I provided in the course of registration. Why can’t the bank rely on those details? He asked. He said the bank should make things easier for their customers by asking only relevant documents that have not been supplied earlier.

    The CBN Governor, Godwin Emefiele explained that the biometric technology involves the process of recording a person’s unique physical traits such as fingerprints and facial features. This record, he said, can then be used to correctly identify the person afterwards.

    He said the BVN became exigent followingthe increasing incidents of compromise on conventional security systems like password and Personal Identification Number (PIN) of bank customers which has led to loss of funds. There is therefore, a high demand for greater security for access to sensitive or personal information in the banking system.

    Also, once a person’s biometrics has been properly captured, the person is given a BVN which protects bank customers, reduce fraud and further strengthen the banking system.

    He explained that fraud is reduced because no two people have the same biometric information. “Banks will therefore be able to check the features of a person doing a transaction against the record which the bank has captured thereby correctly identifying the owner of an account,” he said.

    A statement from the Bankers’ Committee insists that all bank customers in Nigeria are required to register or enroll for a BVN by June. However, to enroll, they must visit a branch of their bank, but the BVN given to a person by one lender will apply to that same person for any bank in the country.

    The committee explained that since the BVN captures physical features, it is also very helpful for people who cannot read and write, thereby making sure that everyone is included in the financial system.

    “It is expected to help the banking system identify customers who have been blacklisted by one bank and who move to other banks. There is also need to inspire confidence in the BVN registration process and use of information collected as well as helps public to distinguish between genuine BVN communication and requirements and the activities of fraudsters,” it said.

     

    Why BVN?

    Biometric security identification is a secure method of identification that eliminates issues with identity theft and fraud. Since it is unique to an individual, biometrics provides a strong link between the individual and the claimed identity.

    “The process of enrollment is simple. Customers are to visit any branch of their bank; fill out and submit the BVN enrolment form; biometric information such as fingerprints and facial imagery  is recorded; acknowledgment slip with transaction Identity is issued; BVN is created and customer is alerted to arrange for pick-up,” it said.

    The committee said the project protect customer bank accounts from authorized access, as biometric information is not easily manipulated. It strengthens the financial system by reducing the risk of unauthorised access to customer bank accounts. It also increases the efficiency of the banking industry as it reduces incidence of fraudulent/duplicate bank accounts, and easily highlights blacklisted customers.

    “Besides, full integration of BVN provides standardized efficiency of banking operation. This means that all banking operations will be verified using the same method, reducing cases of human error or inconsistency. Implementation of BVN means transaction authentication without the use of cards, but instead using only biometrics and a Personal Identification Number (PIN),” it added.

     

    Dermalog/Charms Plc

    For the CBN, the exercise is a continuation of the $50 million biometrics project it instituted with the Bankers’ Committee, Dermalog and Charms Plc.

    However, not until May ending last year, did banks commence issuing BVNs to their customers mainly at their headquarters. Managing Director of NIBSS, Mr. Ade Shonubi said that to ensure an efficient implementation, a phased rollout approach was adopted beginning in Lagos.

    The NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between Banks, Discount Houses and Card Companies in Nigeria. The firm is owned equally by all licensed banks in Nigeria, and the CBN. Discount Houses operating in Nigeria also hold substantial shares.

    Shonubi explained that the BVN enables each individual to have a single identification within the financial system and gives each customer maximum protection and security of transactions. “In many advanced countries, biometric technologies have been used to analyze human characteristics as an enhanced form of authentication for real-time security processes. Biometrics refers to identifying an individual based on physiological or behavioral attributes – fingerprint, signature among others. The customers unique BVN is accepted as a means of identification across all banks,” he said.

     

    Benefits to customers

    Biometric Project Manager at NIBSS, Oluseyi Adenmosun said that BVN gives a unique identity that can be verified across the banking industry making it easier for customers’ bank accounts to be protected from unauthorised access. It is expected to address issues of identity theft, and reduce exposure to fraud in the banking sector.

    The manager added that the purpose of the project is to use biometric information as a means of first identifying and verifying all individuals that have account (s) in any Nigerian bank and consequently, as a means of authenticating customer’s identity at point of transactions.

    Adenmosun said the BVN would also provide a uniform industrially-accepted unique identity for customers and authenticate transactions without the use of cards, using only biometric features and PIN.

     

    Enrolment process

    Collaborating Bankers’ Committee position, Adenmosun said “the enrolment process is simple and easy”. He explained those banks customers are expected to walk into any branch of you’re their bank, fill and submit the BVN Enrolment form and also do data capturing (such as fingerprint, facial image among others.

    He said an acknowledgment slip with the transaction identity is issued to the customer. Within 24 hours, the system confirms the application, the BVN is generated, and SMS is sent to the customer for pickup.

    He said a customer can only enroll once, while his BVN will be linked to all his bank accounts across Nigeria banks. “The BVN solution is to ensure accountability, protect bank customers’ account from unauthorised access, reduce exposure to fraud, check identity theft, enhance credit advancement to Bank customers, and also encourage financial inclusion,” he said.

    He said the initiative addresses issues of identity theft and ensures that your bank accounts is protected from unauthorised access, thus reducing your exposure to fraud. It will also promote a safe and sound financial system in the country, especially as it will keep records of suspected fraudulent individuals in the banking system.

    “It will make life and banking operations easy for bank customers as BVN is accepted as a means of identification across all banks in Nigeria. This will improve speed of service and reduce queues in banking halls.

    At the point of enrolment individuals shall be required to submit an acceptable means of identification, and update their information at the bank branch physically. Customers of banks will be required to enroll within a fixed period after which they shall no longer be able to operate their bank accounts,” he said.

  • CBN extends BVN deadline

    CBN extends BVN deadline

    The Central Bank of Nigeria has extended the deadline for the Bank Verification Number exercise till October 31.

    A statement by the CBN said the decision to extend the BVN registration was due to passionate appeals from the public for the extension of the exercise after the expiration of the earlier deadline on Tuesday.

    The apex bank said it noticed with satisfaction the level of compliance among the banking public and also acknowledged the difficulties which the people have gone through in the last few days in the quest to beat the registration timeline.

    It added that arrangements are being made to enroll bank customers in Diaspora in the next few days.

     

     

  • Knocks for CBN forex policy

    Knocks for CBN forex policy

    Businessmen have rejected the recently-announced Central Bank of Nigeria (CBN) foreign exchange (forex) policy.

    The Lagos Chamber of Commerce and Industry (LCCI) said the CBN approach to the management of the foreign exchange market, especially the directive on the exclusion of 41 products, was worrisome.

    LCCI President Remi Bello said yesterday that the directive, with its multidimensional implications, would  result in major disruptions, dislocations and panic among investors.

    He said many of the products on the list of the 41 are intermediate goods, which are critical inputs for many manufacturing firms and other critical sectors of the economy.

    “This development will put several investments at risk with implications for job losses, quality of loan assets in the banking system and the welfare of citizens,” he said.

    He listed some of the goods as iron rods, Cold Rolled sheets, wire rods, reinforcing Bars, Polypropylene granules, glass and glass ware. Construction, real estate, fabrications, housing, etc will be adversely affected, he added.

    He said: “A painstaking gap analysis to determine the domestic capacity for production vis a vis the demand should have preceded the policy decision by the CBN.

    “The list is prone to multiple definitions and discretionary interpretations by agencies and institutions responsible for implementation.

    “This discretionary interpretation would create room for corruption.”

    Yusuf said the alternative forex markets or the parallel market and the Bureaux de Change (BDCs) are not deep enough to meet the demand of the essential intermediate products on the exclusion list. Bello said the exclusion of the items from the forex market is as good as import prohibition.

    He alleged that the policy measure would lead to the widening of exchange differentials between the interbank markets and the parallel markets. The immediate consequence, he argued would be rampant round tripping of foreign exchange, which the CBN has limited capacity to curb.

    The LCCI boss said the CBN approach to forex allocation “appears administrative in nature, a system prone to abuse and considerable corruption. It could only be likened to the import licensing era of the early eighties,” he said.

    He added that the policy has far reaching implications for investors in fabrication, construction and real estate sectors.

    On the way forward, Bello suggested putting the policy on hold pending a proper study of the demand and supply gaps in the various sectors affected by this policy.

    He urged the CBN to focus more on the market fundamentals and as much as possible allow market mechanism to drive the allocation of foreign exchange. The closer the rate is to equilibrium, the better for the economy and less disruptive for investors, he said.

  • CBN approves Konga’s acquisition of Zinternet

    The Central Bank of Nigeria (CBN) has approved Konga’s acquisition of Zinternet Nigeria Limited (Zinternet) and its mobile money licence. The acquisition, which consolidates the apex bank’s cashless policy programme, entitles Konga to a 100 per cent ownership of the company’s assets.

    Zinternet is an innovative and inter-operable mobile banking and payment provider. Its payment solution, EzPayAfrica mobile payment service allows anyone with a mobile phone to send and receive money, electronically recharge their phone, pay bills & pay for good/services.

    Responding to news of the acquisition, Sim Shagaya, Konga CEO said: “We are excited to work with our banking partners to extend the reach of their services in driving the adoption of cashless payment solutions. As merchants ourselves, we know firsthand the frictions involved in processing transactions and we look forward to exploring how our banking partnerships could eliminate this friction not just for Konga, but also for SMEs around the country.”

    As a company, Konga.com has always been at the forefront of innovation, in a bid to attain its mission of being the engine of commerce and trade in Nigeria. In April 2014, Konga.com opened up its platform to SMEs and enabled them to sell alongside Konga through the Self-Fulfil model. Today, Konga is home to over 15,000 small businesses that trade on the Konga.com domain.

  • A billion toothpicks for CBN

    The title of this piece is actually: “A billion “Okon’s” toothpicks for the folks at CBN” but newspaper headlines don’t often lend themselves fully to the whims and mischief of writers. That is why you have this abridged version. But never mind; nothing spoil as we say out there on the streets. The gist is why Hardball is so magnanimous to award a billion toothpicks to CBN and indeed, which one be Okon’s toothpicks?

    Good questions. First, Okon’s toothpicks: a great friend of Hardball’s told the joke long ago. A certain Madam had asked his houseboy why the toothpicks in the house always got depleted so fast and Okon had answered: “Madam, it’s junior who wastes the toothpicks, I, Okon always put them back in the pack after use!”

    Well, no one was around to tell how Madam reacted upon this revelation but that marked the birth of Okon’s toothpicks. And Hardball hereby awards one billion of Okon’s toothpicks for our gallant folks at our apex money house, Central Bank of Nigeria, CBN. This award, coming from the fullness of heart of Hardball is in recognition of CBN’s courage, wisdom and promptitude in refusing to keep doling out dollars to ‘crazy’ importers to ship in tiny, little sticks.

    To think that Nigeria can supply the entire world with wood-stick toothpicks and to think that with Okon’s environmentally friendly renewable method, a man could use a toothpick for an entire lifetime. Why then would our CBN contemplate, not to talk of condone the release of our hard-earned hard currency to ship in tiny, little pieces of wood from across many seas.

    Poor Mr. Godwin Emefiele, the CBN chief has been rather triumphant since Tuesday when the apex bank announced this earth-shaking no-official-forex-for-toothpicks-policy. According to CBN, it had become imperative to exclude some importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange market in order to encourage local production of these items.

    Wow, great, that must have taken some timing, some doing and some thinking of course. Hardball understands items on the exclusion list like private jet and rice. But any man who ships little sticks from Oyinboland to the woodlands of Africa and he who aids and abets such act; should they not be examined thoroughly whether they suffer extended and un-extenuated psycho-cognitive deficiencies?

    Hardball understands even CBN’s understanding of the importation of stuff like Indian incense, palm kernel, palm oil, vegetable oil, chickens, eggs, tomato paste, soaps, wheelbarrows, head pans, etc. Hardball is full of understanding. Indian incense must be an essential ingredient our teeming marabouts use in preparing potent preparations for our leaders. One must therefore be a bit self-annihilistic to obstruct such a product in high demand by the Brahmins.

    Hardball understands again, Mr. Emefiele’s temerity to tamper with private jets now. He would never have dared a few weeks ago. The times truly are changing indeed. But the aspect Hardball would never understand or live down is the thought that a country known as Nigeria and her CBN and her entire people would ship out dollars and ship in little pieces of wood (for picking our mostly yellow teeth) in this 2015 age! Simply preposterous!