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  • CBN to support young Nigerians with credit, training

    CBN to support young Nigerians with credit, training

    The Central Bank of Nigeria (CBN) has promised to help young Nigerians succeed by designing policies that will make it friendly for youths to access credit and training programmes that will support business growth and new ideas.

    Speaking at the Youth Action Event in Abuja on Friday, CBN Governor Olayemi Cardoso, represented by Deputy Governor Muhammad Sani Abdullahi, said the bank is committed to making sure young people have access to credit and opportunities to grow.

    “We will use our policies to help young people start businesses, create new ideas, and contribute to Nigeria’s economy,” he said. He explained that the CBN will focus on helping young entrepreneurs, especially in areas like digital technology and renewable energy.

    The governor also said young Nigerians are not just the future leaders but important voices in today’s economy. He assured that the CBN will make it easier for young people and those in rural areas to access financial services that will help them grow.

    Read Also: CBN: Diaspora remittances to hit N31.787tr

    He also stressed the importance of working with private companies, international organizations, and civil society to support job creation and business innovation. The CBN, he said, will continue to involve young people in policy-making so that their needs and ideas are considered.

    The Minister of Youth Development, Ayodele Olawande, also promised that the government will continue to support young people, while Jamilu Ado, Vice President of the Joint Consultative Council of the CBN, said the event was part of a bigger plan to give Nigerian youth a stronger voice in shaping the country’s future.

    Ado added that the CBN’s participation in the United Nations General Assembly’s Pact for the Future summit was an important step, showing its dedication to helping young Nigerians succeed.

    The event ended with a call to action, encouraging young people to turn their ideas into real business opportunities that will benefit Nigeria’s economy.

  • CBN: Diaspora remittances to hit N31.787tr

    CBN: Diaspora remittances to hit N31.787tr

    • Apex bank’s policies stem inflation

    The Central Bank of Nigeria (CBN) has projected that diaspora remittances are expected to rise to N31.7871 trillion when fourth-quarter 2024 figures are released.

    The substantial increase in diaspora remittances was attributed to the reforms carried out by the CBN especially the foreign exchange (FX) reforms designed to attract more FX into the country. This development will further strengthen FX supply and contribute to naira stability.

    Recall that diaspora remittances rose from N12.478 trillion in 2023 to N22.734 trillion by the end of the third quarter of 2024.

    CBN Governor, Olayemi Cardoso, who spoke at the 2025 Monetary Policy Forum, which brought together ministers, heads of government agencies involved in economic matters, and private sector stakeholders, disclosed that without its decisive policy interventions, the country’s inflation rate would have soared to 42.81 percent by December 2024.

     “Counterfactual estimates suggest that without these decisive policy interventions, inflation could have reached 42.81 per cent by December 2024,” Cardoso stated. He also assured of the bank’s commitment to tackling inflation in 2025 using orthodox monetary policy measures.

    According to him, throughout 2024, the CBN implemented bold policy measures across six Monetary Policy Committee (MPC) meetings. These included raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 per cent; increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations (ODCs) by 1750 basis points to 50.00 per cent and adjusting the asymmetric corridor around the MPR.

    To strengthen the financial system and ensure macroeconomic stability, the CBN also undertook critical reforms, including unifying multiple exchange rate windows to enhance efficiency in the foreign exchange (FX) market. As a result, remittances through International Money Transfer Operators (IMTOs) increased by 79.4 per cent in the first three quarters of 2024, reaching $4.18 billion compared to $2.33 billion in the same period of 2023.

    The apex bank, Cardoso said, has further restored market confidence by clearing a backlog of FX commitments amounting to $7.0 billion, improving FX liquidity. It also lifted restrictions on 41 items previously banned from accessing the official FX market since 2015. Additionally, the bank introduced new minimum capital requirements for banks, effective by March 2026, to strengthen Nigeria’s banking sector and position it to support the ambition of a $1 trillion economy.

    Other initiatives included the launch of the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy, aimed at bridging the gender gap in financial access. Cardoso also noted the introduction of the Nigeria Foreign Exchange Code, which promotes integrity, transparency, and efficiency in the FX market through six core principles designed to rebuild trust and inspire confidence.

    Read Also: CBN’s policy interventions prevented inflation from reaching 42.81% in 2024 – Cardoso

     “These reforms reflect our commitment to creating an enabling environment for inclusive economic development. However, achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance,” he said.

    Looking ahead to 2025, the CBN Governor stressed the need for strong coordination between fiscal and monetary authorities to anchor expectations and maintain investors’ confidence. “Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence. Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,” he stated.

    Cardoso expressed optimism that Nigeria has “turned a corner” and that disinflation is now within reach. However, he warned that continued commitment to bold, coordinated policy measures is necessary to consolidate the progress made.

    He further noted that cautious optimism is emerging globally regarding potential improvements in capital flows to emerging markets, particularly as advanced economies transition towards monetary easing. Nigeria’s ability to attract these inflows, he said, will depend on investor confidence in the country’s domestic reforms, particularly those that ensure macroeconomic stability and deliver positive real returns on investment.

     “As we shift from unorthodox to orthodox monetary policy, the CBN remains committed to restoring confidence, strengthening policy credibility, and staying focused on its core mandate of price stability,” Cardoso added.

    He pointed out that encouraging signs of policy success are already evident, as FX liquidity is improving, fostering greater stability in the market. The naira, he said, is gradually aligning with market fundamentals, creating a more predictable environment for domestic production, exports, and essential imports. “While challenges remain, we are confident that our policies are setting Nigeria on the path to sustainable economic stability,” he affirmed.

    Earlier, the Deputy Governor for Economic Policy at the CBN, Mohammed Abdullahi, gave further insights into the country’s foreign exchange market reforms. He noted that liberalising the FX market was a pivotal step toward unifying a highly fragmented system and reducing substantial premiums driven by speculative activities and market inefficiencies.

     “Prior to the adoption of a flexible exchange rate regime, the average exchange rate premium stood at an alarming 62.33 percent between January and May 2023. With the introduction of the flexible exchange rate regime, this premium was drastically reduced to an all-time low of 0.10 percent by June 2023, signaling significant progress towards market convergence,” Abdullahi stated.

    Despite these positive trends, Abdullahi acknowledged that Nigeria’s disinflation efforts have been challenged by persistent demand and supply-side shocks, which have hindered the achievement of a single-digit inflation target. “These shocks, among other reasons, have necessitated decisive policy actions to prevent entrenched inflationary expectations,” he said, stressing the importance of maintaining robust communication and engagement with stakeholders.

  • CBN waives N250,000 BDCs’ yearly licence fee

    CBN waives N250,000 BDCs’ yearly licence fee

    The Central Bank of Nigeria (CBN) has waived N250,000 annual licence renewal  fee for each  Bureau De Change (BDC) operator for the 2025 financial year.

    In a statement, CBN Acting Director, Financial Policy & Regulation Department, Johnson Ojah, said the waiver of non-refundable annual licence renewal fee for existing BDCs aligns with the  Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024.

    He said the move also followed the ongoing transition to the new BDC regulatory structure, adding that the waiver of 2025 licence renewal fee, is effective immediately.

     “Any bureau de change that has paid for 2025 licence renewal is hereby advised to apply to the Director, Financial Policy and Regulation Department, Central Bank of Nigeria for refund to its account from which the payment emanated,” he said.

    According to him, the CBN remains committed to fostering stability, transparency, and efficiency in the foreign exchange market while ensuring that operators align with the revised regulatory framework.

    The apex bank had last November extended the recapitalisation deadline for BDC operators from December 3, 2024 to June 3, 2025.

    The apex bank decided to extend the deadline by six months following low level of compliance in raising new capital by BDC operators.

    The new CBN guidelines for the sector also requires all Tier-1 BDCs to raise N2 billion minimum capital to remain in business, while Tier-2 BDCs are to raise N500 million minimum capital. The Tier-1 BDCs will operate nationally, while the Tier-2 BDCs can only operate in one state within the Federation.

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    The capital raising exercise was part of reforms to re-position the BDC sub-sector to play its envisioned role in the foreign exchange market in Nigeria.

    The CBN issued the guideline after the conclusion of stakeholder consultations and in exercise of the powers conferred on it by Section 56 of the Banks and Other Financial Institutions Act (BOFIA) 2020.

    The guidelines, amongst others, introduces new licensing requirements and categories of BDCs as well as revises the permissible activities, financial requirements, corporate governance requirements and AML/CFT/CPF provisions for BDCs.

    According to the new guideline, Tier-1 BDC may operate in any state of the Federation and the Federal Capital Territory (FCT), may establish branches and appoint franchisees in any State and FCT, subject to the written approval of the CBN and shall maintain a minimum distance of one kilometre between its branches, its branch and a franchisee, and between its franchisees.

     It is permitted to exercise oversight on its franchisees, with all franchisees allowed to adopt their franchisor’s name, logo, branding, technology platform and regulatory rendition requirements.

    By the new rule, Tier 2 BDC Licence is permitted to operate only in one State of the Federation or the FCT; allowed to establish five branches in a State of operation, subject to the written approval of the CBN and required to maintain a minimum distance of one kilometre between its branches but is not allowed to appoint franchisees.

    The new rule stops commercial, merchant, non-interest and payment service banks., financial holding companies, other Financial Institutions (OFIs), including International Money Transfer Operators and payment service providers, serving staff of financial services regulatory and supervisory agencies and serving staff of regulated financial services providers, among others from owning BDC license.

  • FX Code: CBN warns against violations, promises severe sanctions

    FX Code: CBN warns against violations, promises severe sanctions

    The Central Bank of Nigeria (CBN) has officially introduced the Nigeria Foreign Exchange Code (FX Code) to guide the behaviour of financial institutions in the foreign exchange market.

    The event, held on Tuesday in Abuja, aims to ensure that banks and other players in the foreign exchange market follow strict rules for ethical conduct and transparency.

    CBN Governor, Olayemi Cardoso, showed the importance of the new code by personally signing a commitment charter on behalf of the bank. 

    Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), led other banking leaders in signing the charter to show their support and willingness to follow the rules.

    During the launch, Governor Cardoso called the FX Code a turning point for Nigeria’s financial system. 

    He said: “The FX Code brings a new level of compliance and accountability. It’s not just advice—it’s a set of enforceable rules. Breaking these rules will lead to penalties. Everyone in the market must understand that following these principles is not just about obeying the rules but also about rebuilding public trust in our financial system.”

    The governor also announced the end of dishonest practices in the market and warned that anyone who breaks the rules will be punished. 

    He added that the FX Code is not just about foreign exchange but is part of a larger effort to improve honesty and compliance across the entire financial sector.

    “The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, severely undermined market integrity. The $7 billion of foreign exchange backlogs that has taken over 12 months to verify revealed multiple unethical and even illegal practices,” Cardoso revealed. 

    The Governor assured stakeholders that the forensic verification process is near completion and that final settlements will follow accordingly. 

    According to him, “The forensic verification process is now near complete and final settlements will be processed. Similarly, the period of unprecedented ways  and means financing inflicted significant damage on our economy, contributing to inflation, currency depletion, and eroded public confidence.’

    The FX Code is built on six core principles: Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement Processes. These principles he said aligns with global standards while addressing Nigeria’s unique challenges. 

    “Embedding these standards within your organizations is not optional,” Cardoso told the financial institutions.

    Oliver Alawuba, the UBA Managing Director, lauded the FX Code as a pivotal initiative for stabilizing Nigeria’s foreign exchange market. 

    “This initiative not only complements other notable reforms of the CBN but also sets a new benchmark for accountability and integrity in the FX market. By embedding global best practices and fostering a culture of trust and equity, the Code will enhance market efficiency, attract greater participation, and elevate Nigeria’s standing in the global financial landscape,” Alawuba remarked.

    He urged financial institutions to embrace the FX Code as a unified platform for reinforcing fairness, professionalism, and ethical behavior in Nigeria’s financial markets. 

    “The strength of any financial market lies in the integrity of its participants. Together, we can ensure that this market becomes a beacon of excellence, one that inspires confidence both locally and globally,” he added.

    Dr. Omolara Duke, Director of the Financial Market Department at the CBN, described the FX Code as a transformative step forward. 

    “The FX Code is a set of principles of good foreign exchange market practices developed to promote the integrity and robust functioning of the wholesale foreign exchange market. The lack of trust impaired the efficient functioning of the foreign exchange market globally, necessitating the Global FX Code, of which the Nigerian FX Code is an extension,” she said.

    Duke noted that the FX Code adopts lessons from the Global FX Code launched in May 2017, following global misconduct in foreign exchange markets. By aligning with international standards, Nigeria joins a community of 54 central banks already listed on the Bank of International Settlements’ Central Bank Register.

    Read Also; Wema Bank to raise additional N200b to meet CBN recapitalisation

    The FX Code represents more than a framework—it is a commitment to rewriting the narrative of Nigeria’s foreign exchange market. With the recent introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024, market transparency and efficiency have significantly improved. The naira appreciated from N1,663.90 to N1,536.72 in less than two months, demonstrating the system’s impact.

    The CBN insisted that exchange rate stability remains a cornerstone of macroeconomic health, influencing critical indicators such as inflation, international trade, and foreign investment. 

    “By fostering exchange rate stability, we are tackling inflation and its impact on purchasing power,” Cardoso noted.

    The success of the FX Code, the CBN stressed, depends on the collective responsibility of all stakeholders. 

    “This legislation requires more than rules. It requires people. It demands that we hold each other accountable, that we make the principles of the FX Code a part of everyday decisions, and that we refuse to compromise on the values entrenched in the principles,” Duke emphasized.

  • ALGON: 774 councils to open dedicated accounts with CBN

    ALGON: 774 councils to open dedicated accounts with CBN

    • NFIU to monitor spending 
    • Fraudulent chairmen, other officials for prosecution by EFCC, ICPC

    The 774 local governments are to open dedicated accounts with the Central Bank of Nigeria (CBN) for the direct disbursement of allocations to them from the Federation Account, the Association of Local Governments (ALGON) said yesterday.

    The National President, Bello Lawal Yandaki, said the opening of the account is critical to the implementation of the Supreme Court ruling on direct allocations to the councils.

    He said the apex bank is waiting for the Federal Government’s directive on the opening of the accounts.

    Also, the Nigerian Financial Intelligence Unit (NFIU) is to monitor the utilisation of the funds by the chairmen in conformity with the principles of transparency, accountability and good governance, a source said.

    According to the source, the Federal Government has constituted a team of anti-corruption agents drawn from the Independent Corrupt Practices and other Related Offences Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC) to prosecute council chairmen and other officials who indulge in corrupt practices.

    Yandaki, who spoke with reporters in Katsina, the capital of Katsina State, allayed fears over the delay in the disbursement of funds to the councils.

    He said there was no cause for alarm and attributed the delay to the failure of councils to submit necessary bank details to the Federation Accounts and Allocations Committee (FAAC) required for facilitating the payments.

    He said: “The CBN is presently awaiting directives from the Federal Government to open local government accounts for the respective states, which can be done between 24 and 48 hours for each.’

    “I am a member of the sub-committee that was set up to trash out contentious grey areas, and we have already met relevant stakeholders, including labour unions, local government chairmen, NULGE, and so on.

    “There’s a general agreement that the commencement of direct federal revenue allocations to LGs will be this January.

    “Hopefully, we are just rounding off meetings and making submissions to the Federal Government for implantation and there’s no set timeline.’’

    A source present at the FAAC meeting at the weekend also said: “The structures are yet to be erected. The LGAs have to be coordinated.

    “Those that have opened an account with the CBN did not submit their details to FAAC for crediting, resulting in the delay.”

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    During the January FAAC meeting, N361.754 billion was allocated to the LGAs.

    However, the funds remain undistributed due to these administrative bottlenecks.

    FAAC officials have urged the councils to resolve these issues before the month’s end to ensure they receive their allocations.

    The Federal Government’s decision to channel funds directly to the local government followed the Supreme Court’s ruling affirming the autonomy of the councils.

    However, although the apex court ruling mandates direct allocation of funds to councils, thereby bypassing state governments, there have been concerns about compliance.

    An example is Anambra State where a state law provides that local government funds can only be disbursed through a joint state/local government account.

    According to the source, the Federal Government constituted the anti-corruption team to monitor the accounts of the councils in a bid to prevent illegal diversion by governors and ensure financial accountability and autonomy at the grassroots level.

    Shedding light on the stringent measures to track financial activities across the councils, he added: “If any local government chairman does anything untoward, people will know, and he may be invited by the anti-corruption agencies to answer for it.”

    The source noted that council chairmen should now take full responsibility for their financial operations.

    He said: “Local government chairmen should know that because monies are going directly to them, they have no excuse to say the governor has diverted their funds.

    “They should be careful and know they will be held responsible.”

    He warned that any chairman found transferring bulk funds back to state governors would face the consequences.

    The source added: “If a chairman disposes of the money in bulk to the state government, of course, he will have to answer for it.

    “Anti-corruption agencies are closely monitoring these transactions to ensure compliance.

    “If LGA monies are tied to the joint account in violation of the law, the anti-corruption agencies, especially the ICPC, will intervene.

    “After LGAs receive their funds, if they choose to transfer it to the state government, that’s their decision.

    “However, if this violates the law, the anti-corruption team will act accordingly.”

    The source expressed confidence that these measures would strengthen financial transparency and improve service delivery at the grassroots level.

    “This initiative is a game-changer. It not only protects local government allocations but also holds chairmen accountable for their financial decisions.

    “This is a step in the right direction for Nigeria’s democracy,” the source said.

  • CBN unveils digital initiatives

    CBN unveils digital initiatives

    The Central Bank of Nigeria (CBN) has unveiled two new digital initiatives—the Document Flow (DocFlow) System and the Ministries, Departments, and Agencies (MDAs) Naira Payment Solution.

    A statement from the CBN said the initiatives were launched, held at the CBN Head Office in Abuja on Wednesday, January 15, 2025, and is part of the Bank’s ongoing “Digital First” transformation project, which began in December 2023 under the leadership of the Governor, Mr. Olayemi Cardoso.

    The MDAs Naira Payment Solution is seen as an achievement in the Bank’s efforts to enhance financial transaction management.

    It is projected to improve payment turnaround time by 70 per cent further advancing Nigeria’s financial ecosystem.

    CBN Governor, Olayemi Cardoso described the initiative as a revolutionary tool that automates cash withdrawal processes for MDAs, boosting operational efficiency and strengthening client support.

    “The MDAs Naira Payment Solution enhances efficiency in financial transactions, minimizes errors, and mitigates fraud. It represents a commitment to improving service delivery and fostering sustainability through technological advancements,” Cardoso stated. He also commended the in-house development of the solutions, which he said saved substantial costs.

    Read Also: Lagos set to receive six new trains

    The DocFlow System, designed to modernize the Bank’s document management processes, focuses on digitizing documentation, reducing paper usage, and streamlining approval workflows.

    Cardoso expressed satisfaction with the progress of the “Digital First” initiative, pledging continued commitment to projects that enhance operational efficiency and service delivery.

    Deputy Governor of Operations, Emem Usoro, pointed out the significance of the launch, describing it as a testament to the Bank’s dedication to operational excellence and innovation. She noted the MDAs Naira Payment Solution’s ability to minimize errors, irregularities, and fraud, ultimately ensuring improved service delivery for MDAs.

    Mrs. Jide-Samuel, Acting Director of the CBN’s Information Technology Department and project lead, disclosed that the MDAs Naira Payment Solution has already been successfully tested with some MDAs. She noted that the initiative aligns with the Bank’s enterprise objective of achieving “Excellence in Central Banking Operations.”

    The launch reinforces the CBN’s commitment to leveraging technology to drive efficiency, transparency, and sustainability in its operations, further positioning the Bank as a leader in digital innovation within Nigeria’s financial sector.

  • CBN launches digital initiatives for financial transactions, document management

    CBN launches digital initiatives for financial transactions, document management

    The Central Bank of Nigeria (CBN) has unveiled two new digital initiatives—the Document Flow (DocFlow) System and the Ministries, Departments, and Agencies (MDAs) Naira Payment Solution. 

    A statement from the CBN said the initiatives were launched, held at the CBN Head Office in Abuja on Wednesday, January 15, 2025, and is part of the Bank’s ongoing “Digital First” transformation project, which began in December 2023 under the leadership of the Governor, Mr. Olayemi Cardoso.

    The MDAs Naira Payment Solution is seen as an achievement in the Bank’s efforts to enhance financial transaction management. 

    It is projected to improve payment turnaround time by 70 percent further advancing Nigeria’s financial ecosystem. 

    CBN Governor, Olayemi Cardoso described the initiative as a revolutionary tool that automates cash withdrawal processes for MDAs, boosting operational efficiency and strengthening client support.

    “The MDAs Naira Payment Solution enhances efficiency in financial transactions, minimizes errors, and mitigates fraud. It represents a commitment to improving service delivery and fostering sustainability through technological advancements,” Cardoso stated. He also commended the in-house development of the solutions, which he said saved substantial costs.

    The DocFlow System, designed to modernize the Bank’s document management processes, focuses on digitizing documentation, reducing paper usage, and streamlining approval workflows. 

    Cardoso expressed satisfaction with the progress of the “Digital First” initiative, pledging continued commitment to projects that enhance operational efficiency and service delivery.

    Read Also: CBN sanctions nine banks for hoarding cash

    Deputy Governor of Operations, Emem Usoro, pointed out the significance of the launch, describing it as a testament to the Bank’s dedication to operational excellence and innovation. She noted the MDAs Naira Payment Solution’s ability to minimize errors, irregularities, and fraud, ultimately ensuring improved service delivery for MDAs.

    Mrs. Jide-Samuel, Acting Director of the CBN’s Information Technology Department and project lead, disclosed that the MDAs Naira Payment Solution has already been successfully tested with some MDAs. She noted that the initiative aligns with the Bank’s enterprise objective of achieving “Excellence in Central Banking Operations.”

    The launch reinforces the CBN’s commitment to leveraging technology to drive efficiency, transparency, and sustainability in its operations, further positioning the Bank as a leader in digital innovation within Nigeria’s financial sector.

  • CBN sanctions nine banks for hoarding cash

    CBN sanctions nine banks for hoarding cash

    NINE Deposit Money Banks (DMBs) are to pay a N1.35 billion fine for failing to adequately load their Automated Teller Machines (ATMs) during the Yuletide.

    The Central Bank of Nigeria (CBN) which slammed the sanction, said each of the banks would pay N150 million as fine for non-compliance with the regulator’s cash distribution guidelines, following spot checks conducted at their branches.

    The sanctioned banks are: Fidelity Bank Plc; First Bank Plc; Keystone Bank Plc; Union Bank Plc; Globus Bank Plc; Providus Bank Plc; Zenith Bank Plc; United Bank for Africa Plc and Sterling Bank Plc.

    A statement by the CBN said the fines had been enforced, stressing that the commitment to guaranteeing seamless cash flow, particularly during periods of high demand, would be sustained.

    According to the apex bank, the fines would be debited directly from the affected banks’ accounts.

    Read Also: CBN launches non-resident Nigerian accounts

    The statement by the CBN Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, reads: “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.

    “The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”

    The CBN also disclosed ongoing investigations into cash hoarding and rationing by bank branches and Point-of-Sale (PoS) operators.

    Mrs. Ali said the CBN is collaborating with security agencies to address illegal cash sales and enforce the PoS operators’ daily cumulative withdrawal limit of N1.2 million.

  • BREAKING: CBN fines nine banks N1.35bn for hoarding cash 

    BREAKING: CBN fines nine banks N1.35bn for hoarding cash 

    The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure adequate availability of Naira notes through Automated Teller Machines (ATMs) during the yuletide season.

    The banks were fined N150 million for non-compliance with the CBN’s cash distribution guidelines following spot checks conducted at their branches.

    A statement from the CBN confirmed the enforcement action, stressing the apex bank’s commitment to guaranteeing seamless cash flow, particularly during periods of high demand. The apex bank revealed that the fines would be debited directly from the affected banks’ accounts.

    The Acting Director, Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, stated: “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”

    Read Also: CBN launches non-resident Nigerian accounts

    The CBN also announced ongoing investigations into cash hoarding and rationing by bank branches and Point-of-Sale (POS) operators. 

    Ali said the CBN was collaborating with security agencies to address illegal cash sales and enforce the POS operators’ daily cumulative withdrawal limit of ₦1.2 million.

    Governor Olayemi Cardoso, at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned financial institutions to strictly adhere to cash distribution policies or face severe penalties. 

    He reiterated the CBN’s commitment to maintaining trust, stability, and efficient cash circulation within the financial system.

    Details Shortly…

  • CBN launches non-resident Nigerian accounts

    CBN launches non-resident Nigerian accounts

    The Central Bank of Nigeria (CBN) has announced the launch of two new account types targeted at Nigerians in the diaspora: the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).

    These accounts are designed to enhance diaspora participation in the Nigerian economy while offering secure and flexible financial management options.

    The introduction of these accounts was detailed in a circular signed by Dr. W. J. Kanya, Acting Director of the Trade and Exchange Department. According to the circular, the NRNOA allows Non-Resident Nigerians (NRNs) to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies. On the other hand, the NRNIA provides NRNs the opportunity to invest in assets within Nigeria, using either foreign currency (FCY) or local currency (Naira).

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    Account holders can maintain both foreign currency and Naira accounts, facilitating diverse transactions and investments. The initiative promises significant benefits, including improved access for NRNs to Nigerian economic opportunities and increased diaspora contributions to the nation’s socio-economic development. Additionally, the NRNIA provides a pathway for diaspora participation in Nigeria’s Diaspora Bond and other locally issued debt instruments.

    The accounts are set to be available from January 1, 2025, with eligibility subject to Know Your Customer (KYC) requirements, details of which will be released in forthcoming Frequently Asked Questions (FAQs).

    The CBN noted that this policy aligns with Memorandum 17 of the CBN Foreign Exchange Manual (2018).

    The NRNOA enables NRNs to deposit foreign earnings such as salaries, dividends, and rental income into accounts held in freely convertible currencies specified by the CBN. Funds can also be converted to Naira at prevailing exchange rates through authorized dealers, allowing account holders to meet personal expenses in Nigeria, such as family maintenance, education, and healthcare.

    Balances in FCY accounts under the NRNOA can be fully repatriated without restrictions, while interest earned on deposits will be subject to applicable Nigerian tax laws. The accounts also comply with global Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) standards, ensuring secure and transparent transactions.

    The NRNIA focuses on investment opportunities, enabling NRNs to invest in both foreign and local currency assets. Account holders can explore financial markets and instruments, including foreign currency bonds, fixed deposits, equities, government securities, and mortgage products.

    The NRNIA ensures ease of capital mobility, with investment principal and profits fully repatriable. Tax obligations will apply to investments, except for specific exemptions like government bonds. This account also aligns with international AML/CTF standards, ensuring secure investment transactions.

    Eligibility criteria for the NRNIA include a valid or expired Nigerian passport with a foreign passport, or evidence of Nigerian citizenship through parentage. Proof of residency and source of income documentation, such as salary slips or business registration documents, are also required.

    The CBN is leveraging digital platforms to simplify onboarding and KYC updates. Banks are encouraged to integrate with the Nigeria Inter-Bank Settlement System (NIBSS) platform, enabling NRNs to acquire Bank Verification Numbers (BVNs) for account opening.

    Repatriation of FCY balances in the NRNOA and NRNIA are unrestricted, while Naira balances linked to prior foreign inflows and investment proceeds can also be repatriated. Local transfers within Nigeria are allowed only in Naira, and local deposits are prohibited except for traceable proceeds from approved local investments.

    The CBN noted the integration of these accounts with Nigeria’s Diaspora Bond and financial markets. NRNs can use the NRNIA to participate in local and FCY-denominated financial instruments, furthering their investment diversification. The initiative also seeks to reduce reliance on third parties for managing local obligations, providing a secure and efficient alternative for NRNs.