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  • FG, CBN task bankers on economic growth

    FG, CBN task bankers on economic growth

    The Federal Government and the Central Bank of Nigeria (CBN) have directed the nation’s banking sector to develop strategies that will spur economic growth.

    This call was made by Vice President Kashim Shettima and the CBN governor at the 2024 Annual Bankers’ Committee/CIBN Retreat held in Abuja yesterday.

    Speaking on the critical role of banks, the Vice President noted that the profits that banks are declaring should translate to economic growth.

    According to the Vice President, “the robust profitability that we have seen in that sector should reflect—at least marginally—in the GDP growth numbers posted by the country at large.”

    He urged Nigerian banks to consolidate their position as catalysts for economic growth and development, aligning with the administration’s vision to elevate Nigeria’s economic standing on the African continent and globally. Stressing the recent economic reforms, Shettima commended President Bola Ahmed Tinubu’s resolve to pursue long-term benefits despite resistance.

    The Vice President noted that the unification of the naira has led to both challenges and opportunities. While the currency’s depreciation has prompted a reduction in foreign travel and education, it has also increased focus on local institutions and spurred export growth. He attributed this to the Marshall-Lerner principle, where currency devaluation, under certain conditions, stimulates exports and discourages imports.

    “The weakening of the naira has resulted in a spike in exports, as the principle has kicked in for Nigeria,” he said, adding that the development could encourage local value addition and production.

    Shettima said the government’s ambitious target of achieving a $1 trillion economy, could increase Nigeria’s per capita GDP from $1,000 to over $4,000. He stressed the importance of credit facilities for productive sectors, syndication of large-ticket loans, and a long-term market approach to attain this goal. “The banking sector is perhaps the most critical ally to the government in the pursuit of this objective,” Shettima stated.

    Vice President Shettima also addressed ongoing tax reforms aimed at enhancing public revenues, noting that Nigeria’s current revenue levels are insufficient compared to peer economies like Kenya and South Africa. “Our debt level, currently at 52 percent, may reduce to 30 percent post-rebasing, but public revenues remain a bigger issue,” he said.

    The Vice President the reiterated that the National Bureau of Statistics (NBS) is working on rebasing the economy’s GDP and Consumer Price Index, with results expected by January 2025. “This process will help recalibrate the economy and align it with global standards,” he added.

    Read Also: Presidency: Tax reform bills not anti-north, aimed at economic growth

    Acknowledging complaints about cash shortages and exploitation by Point-of-Sale (POS) operators, Shettima urged the banking sector to address these issues. He also called for greater support for micro, small, and medium enterprises (MSMEs) and efforts to enhance consumer credit culture in Nigeria.

    CBN Governor, Mr. Olayemi Cardoso, outlined key areas for consideration, including improving the business environment, leveraging public-private partnerships for infrastructure, closing workforce skill gaps, fostering innovation, and strengthening the social contract with Nigerians.

    The CBN he said “is committed to implementing actionable ideas and strategies that will emerge from our discussions.”

    The retreat concluded with a consensus on the need for collective efforts by stakeholders to drive inclusive and sustainable economic growth in Nigeria.

  • ‘CBN’s early exit plan voluntary’

    ‘CBN’s early exit plan voluntary’

    The Central Bank of Nigeria (CBN) has denied allegations of enforced mass retirements, reaffirming that its newly introduced Early Exit Package (EEP) is entirely voluntary and free from any adverse consequences for eligible employees.

    In a statement yesterday, the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, stated that the decision to roll out the EEP followed comprehensive discussions with the Bank’s Joint Consultative Council (JCC), which represents the interests of workers.

    Read Also: Tinubu departs South Africa after Bi-National event

    “The Early Exit Package, a policy that has historically been extended to executive staff, has now been made available to personnel across all levels of the bank,” Mrs. Sidi Ali stated.

    She noted that the move was in response to requests made by staff representatives through the JCC, who had advocated for the implementation of the package for all employees. “Following these discussions, management decided to meet this popular demand,” she added.

    Amid rising concerns about the implications for workers who choose not to participate in the EEP, Mrs. Sidi Ali assured employees that the management is dedicated to fostering their professional development and well-being.

  • CBN dismisses claims of forced retirements, says early exit package is voluntary

    CBN dismisses claims of forced retirements, says early exit package is voluntary

    The Central Bank of Nigeria (CBN) has refuted claims of enforcing mass retirements, clarifying that its newly introduced Early Exit Package (EEP) is entirely voluntary and without negative implications for eligible employees. 

    In a statement issued on Wednesday, the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, explained that the decision to implement the EEP followed extensive consultations with the Bank’s Joint Consultative Council (JCC), which represents staff interests. 

    “The Early Exit Package, a policy that has historically been extended to executive staff, has now been made available to personnel across all levels of the Bank,” Mrs. Sidi Ali stated. 

    She added that the initiative was introduced in response to requests from staff representatives through the JCC, who advocated for the package’s expansion to include all employees. 

    “Following these discussions, management decided to meet this popular demand,” she added.

    Read Also: CBN launches redesigned website

    Amid rising concerns about the implications for staff members who choose not to participate in the EEP, Mrs. Sidi Ali assured employees that the management is dedicated to fostering their professional development and well-being.

    She described the worries surrounding the programme as unwarranted and reiterated that this initiative is primarily aimed at promoting career growth and internal development.

    “This is an internal corporate matter intended to enhance opportunities for our staff,” she concluded, emphasizing the Bank’s commitment to a supportive work environment.

  • JUST IN: Reps ask CBN to halt retirement of 1000, staff pending investigation

    JUST IN: Reps ask CBN to halt retirement of 1000, staff pending investigation

    The House of Representatives on Tuesday directed the Central Bank of Nigeria (CBN) to halt the implementation of the retirement of 1,000 staff and the associated payoff scheme until the conclusion of an investigation.

    The House resolved to probe the mass retirement of over 1,000 CBN staff to assess the criteria, process, and legality of the exercise. 

    It also aims to scrutinise the N50 billion payoff scheme to ensure transparency, accountability, and proper use of funds.

    An ad hoc committee will be formed to engage with CBN leadership to evaluate the potential economic and institutional impacts of the retirement on Nigeria’s financial sector.

    Adopting a motion of urgent public importance sponsored by Kama Nkemkama (LP, Ebonyi), the House asked the Federal Ministry of Labour and Employment to ensure that the rights of the affected staff are protected in accordance with Nigerian labour laws.

    Leading the debate on the motion, Nkemkama drew attention to a media reports indicating that the Central Bank of Nigeria (CBN) plans to retire over 1,000 staff across various levels as part of its restructuring process under the Acting Governor’s leadership.

    According to him, the CBN reportedly announced a N50 billion payoff scheme to compensate the affected staff, as part of its human resource reorganisation strategy, with claims that the process will ensure fairness and equity.

    He expressed concern that the sudden mass retirement of over 1,000 staff, including directors and senior management, raises critical questions about the criteria for selection, transparency, and adherence to due process in line with public service guidelines and labour laws.

    Read Also: Why we postponed debate on Tax reform bills, by Reps spokesman

    He said such a significant decision has socio-economic implications for the affected individuals, their dependants, and the broader economy, potentially leading to increased unemployment and public dissatisfaction.

    He said the reported payoff scheme amounting to N50 billion may lack sufficient accountability and oversight mechanisms, posing risks of mismanagement and abuse of public funds in a sector vital to Nigeria’s financial stability.

  • CBN launches redesigned website

    CBN launches redesigned website

    The Central Bank of Nigeria (CBN) has announced the launch of its newly redesigned website that will start working today. The redesign, which promises enhanced features and functionality, was developed entirely in-house by the bank’s technology team.

    In a statement yesterday in Abuja by its acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank expressed its excitement about the innovation.

    The statement said: “We are pleased to announce that the front-end design and back-end technology were created in-house.

    “The new website operates on a contemporary Web API built on Microsoft.NET Core 8, the latest stable release. This upgrade is expected to improve user experience significantly by enabling faster and more seamless navigation.”

    The revamped platform also introduces a variety of new content aimed at providing a more comprehensive understanding of the bank’s mandate.

    Read Also: Tinubu heads to Cape Town to co-chair 11th Nigeria-South Africa BNC

    It boasts mobile responsiveness, ensuring compatibility with various web browsers and devices for ease of access.

    The statement explained that public feedback played a critical role in shaping the redesign. “The bank is grateful for the feedback provided by the public, which served as a valuable guide for our redesign endeavours.”

     We are committed to developing and enhancing the website to facilitate communication,” it said.

    The CBN also urged the public to stay informed by following its official social media channels, which are now conveniently linked on the website’s homepage.

    The launch of the redesigned website aligns with the CBN’s goal of improving transparency and fostering effective communication with stakeholders.

    Users can explore the new features starting today at www.cbn.gov.ng.

  • CBN unveils redesigned website with enhanced features, accessibility

    CBN unveils redesigned website with enhanced features, accessibility

    The Central Bank of Nigeria (CBN) has announced the launch of its newly redesigned website, which will go live on Monday, December 2, 2024. 

    This update, which promises enhanced features and functionality, was developed entirely in-house by the Bank’s technology team.

    In a statement issued on Sunday, Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, expressed the Bank’s excitement about the innovation. 

    She noted: “We are pleased to announce that the front-end design and back-end technology were created in-house.”

    The Bank disclosed that “the new website operates on a contemporary Web API built on Microsoft .NET Core 8, the latest stable release. This upgrade is expected to improve user experience significantly by enabling faster and more seamless navigation.”

    The revamped platform also introduces a variety of new content aimed at providing a more comprehensive understanding of the Bank’s mandate. Furthermore, it boasts mobile responsiveness, ensuring compatibility with various web browsers and devices for ease of access.

    Read Also: CBN reforms support strong, resilient African financial architecture – Cardoso

    According to the statement, public feedback played a critical role in shaping the redesign. 

    “The Bank is grateful for the feedback provided by the public, which served as a valuable guide for our redesign endeavours. We are committed to developing and enhancing the website to facilitate communication,” Hakama said.

    The CBN also urged the public to stay informed by following its official social media channels, which are now conveniently linked on the website’s homepage.

    The launch of the redesigned website aligns with the CBN’s goal of improving transparency and fostering effective communication with stakeholders. Users can explore the new features starting Monday at www.cbn.gov.ng.

  • CBN commences spot checks on banks to alleviate cash scarcity

    CBN commences spot checks on banks to alleviate cash scarcity

    Sequel to the Friday advice by Central Bank of Nigeria (CBN) Governor Olayemi Cardoso to bank customers to report any difficulties in withdrawing cash from bank branches or ATMs to the apex bank from today, CBN officials are commencing immediate spot checks on bank branches across the country.

    Cardoso, who spoke during the 2024 annual bankers dinner in Lagos organised by the Chattered Institute of Bankers of Nigeria (CIBN), urged customers to make reports through designated phone numbers and email addresses for their respective states.

    The Nation gathered yesterday in Abuja that the CBN has decided to go beyond waiting for formal complaints from customers.

    Sources said officials of the apex bank would start visiting bank branches unannounced to ensure compliance with directives on cash distribution.

    An official said any bank found hoarding cash during the inspection would be duly punished.

    All branches of Deposit Money Banks (DMBs) are under instruction to release all available cash to customers to ease the cash crunch in the country.

    Said one of the sources: “Teams from the bank will embark on on-the-spot checks from Sunday, December 1, 2024. Any bank found hoarding cash will be severely sanctioned.

    “These inspections will intensify in the coming days and weeks to mitigate the current cash crunch that is crippling banking transactions.”

    Nigerians have endured significant hardships over the last two years owing to persistent cash shortages.

    On Friday, bank branches in Abuja restricted withdrawal over the counter to  N20,000 and a maximum of N50,000 through Automated Teller Machines (ATMs) for customers using the bank’s own cards. Holders of other banks’ ATM cards were subjected to even lower withdrawal limits.

    In contrast, Point of Sale (PoS) operators seem to have unrestricted access to cash and have capitalised on the crisis by increasing transaction charges exponentially. At Gosa Market along Airport Road in Abuja, most PoS operators now charge N2,000 for a N50,000 cash withdrawal.

    Bank officials blamed the CBN for the scarcity, alleging insufficient cash allocations to branches.

    An official at a leading bank, who spoke anonymously, said: “We are cash-strapped because the CBN has not provided enough cash. Our branch is only able to give N50,000 over the counter, which is barely enough to meet customer demands.”

    The CBN, however, refuted the claims. Speaking to The Nation, a CBN official insisted that the apex bank has been fulfilling cash requests from commercial banks.

    Cash crunch bites harder in Katsina

    The cash crunch has affected business activities and transportation in Katsina State. So much so that even PoS operators hardly have sufficient cash to transact business.

    Alhaji Abubakar Kaikai, a POS operator on Yahaya Madaki Way, Katsina, said only one bank in the city tries to meet its customers’ financial demands.

    The rest, according to him, struggle to pay more than N10,000 per customer.

    “Only when the banks receive large deposits do they dispense more. They all complain about poor cash receipts from the CBN,” he said.

    He added: “My own bank has for the past four months failed to dispense cash to its customers.  I am even considering closing my account with them.

    “Most of these commercial banks often complain that the ration they get from the CBN is hardly enough to share to their other branches.

    ”CBN must increase allocations to the commercial banks and promptly sanction banks that fail to come for withdrawals from them regularly, because these banks always blame the CBN for poor dispensation of cash to their customers.”

    Abia, Benue customers lament as banks starve them of cash

    Bank customers in Abia State wonder why the banks deny them cash whenever they what to make withdrawal be it across the counter or through ATMs.

    As at Friday, most bank Automated Teller Machines (ATM) dispensed between N10,000 and N40,000 to their customers while other bank customers were allowed to withdraw between N5,000 and N10,000.

    Read Also: CBN issues ultimatum against banks, ATM delays

    While customers in Umuahia could withdraw a maximum of N10,000 across the counter, those in Aba, the commercial hub, could take N20,000 per transaction.

    Some bank customers also accused bank staff of conniving with operators of Point of Sale (POS) to access all the cash in the vaults at the expense of bank customers.

    Bank workers said the CBN was to blame because they (commercial banks) were not getting up to what they demanded.

    Bank customers in Benue State say the problem has persisted for over two months now and are struggling to access cash at ATMs in Makurdi and surrounding areas.

    They said in separate interviews that the banks ration cash ranging between N20000 and N50000 to customers.

    Situation better in Kano, Enugu, Kwara

    The situation is better in Kano with customers making withdrawals with relative ease across the Kano metropolis.

    Whether in the banking halls or at the ATMs, customers have little to complain about cash withdrawal.

    Residents of Enugu State weekend heaved sighs of relief following the return of cash in the ATMs.

    The ATMs resumed dispensing cash following weeks of cash shortages, with customers withdrawing cash up to N10,000 per transaction.

    Our correspondent who visited some ATM galleries reported a significant improvement with shorter queues at ATMs and consistent cash availability.

    At some hotels and public places, customers were seen making cash withdrawals.

    A customer told our correspondent: “This is a great relief for some of us. You can imagine that I had to pay N400 just to withdraw N5000 from a POS operator.

    “But today, I withdrew cash from an ATM without any issues. This is a big relief. It’s encouraging to see ATMs dispensing cash again.

    “But I hope this trend continues, especially as we prepare for the festive season when the demand for cash is usually higher.”

    Although most of the ATMs in Ilorin, the Kwara State capital have been dispensing cash, there is always a ceiling to what each customer can withdraw in one day.

    The amount dispensed by the machines varies from bank to bank.

    In some banks, the ceiling is N20,000 per day. In some others, it is N40,000.

    Banks, PoS operators trade blame in Anambra

    Bank branches in Anambra State blame POS operators for taking all the cash loaded in the ATMs, while the POS operators in turn say the banks are to blame for the cash crunch.

    The banks insist that they usually load enough money in the ATMs, which POS operators clear in no time.

    The POS operators deny the accusation and claim that bank managers charge them huge sums to release enough to service their customers.

    With the Christmas and New Year festivities around the corner, many Nigerians need a lot of cash for shopping.

  • CBN issues ultimatum against banks, ATM delays

    CBN issues ultimatum against banks, ATM delays

    The Central Bank of Nigeria (CBN) on Friday advised bank customers to report any difficulties withdrawing cash from bank branches or ATMs to the apex bank from December 1.

    CBN Governor, Olayemi Cardoso, said this during the 2024 annual bankers dinner in Lagos organised by the Chattered Institute of Bankers of Nigeria (CIBN)

    He urged customers to make reports through designated phone numbers and email addresses for their respective states.

    Cardoso, who was coffered fellowship of the CIBN, said the guidelines would be distributed widely to raise public awareness.

    He called for full regulatory compliance by all stakeholders, including Mobile Money Operators and PoS Agents, to promote digital transaction channels and improve service delivery.

    “We also recognize the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.

    “To address this, we are conducting spot checks across Deposit Money Banks (DMBs) and will impose penalties on underperforming institutions.

    “Effective December 1, 2024, customers are encouraged to report any difficulties withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.

    “I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties,” he said.

    According to him, the CBN will continue to maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.

    The CBN governor said the focus was to ensure seamless cash flow for Nigerians while fostering trust and stability in the financial system.

    He explained the Payment System Vision initiative for 2025 to further enhance confidence in the nation’s payment system.

    He assured that payment gateways in settling financial transactions will become better in 2025 as delays will be addressed.

    Cardoso said that trust was fundamental to fostering digital transactions, and CBN must take every necessary step to preserve that trust in payment systems.

    Read Also: Cash crunch hits Katsina despite CBN directive

    He said delays often disproportionately affect vulnerable segments of the population, adding that CBN would apply penalties on non-compliant institutions to safeguard consumer trust and ensure swift redress mechanisms.

    He said in 2025, CBN would prioritize initiatives including implementing open banking framework, advancing contactless payment systems, and expanding its regulatory sandbox.

    “Additionally, we will issue revised guidelines for agency banking and continue to strengthen electronic payment channels”.

    He also disclosed that Nigeria would exit the grey list on the Financial Action Task Force (FATF) by Q2 of 2025 while reeling out enforcement plans against money laundering, cybercrime, fraud, corruption, among others.

    Prof. Pius Deji Olanrewaju, President/Chairman of  the Chartered Institute of Bankers of Nigeria (CIBN), said that 2024 had been an eventful year for the banking industry and the economy.

    He said various policies and regulations of the apex bank and the federal government had begun to yield fruit.

    “For example, the Nigerian economy continues to be more resilient and agile as shown in the steady growth from 2.98 per cent in Q1 to 3.19 per cent in Q2 and now 3.46 per cent in Q3 of 2024.

    “Likewise, the Nigerian banking industry has also shown resilience this year despite the macroeconomic pressures such as rising inflation, and exchange rate fluctuations, amongst others.

    “The bank recapitalization exercise also attests to the fact that we are well on our way towards not only strengthening the financial sector but also supporting a $1 trillion economy envisaged by 2030,” he said.

    Also, Dr Ibrahim Stevens, Governor of the Central Bank in Sierra Leone praised efforts of the CIBN and Nigeria’s apex bank yielding positive fruits in Africa and globally.

    He called for collaboration towards building a sound financial eco system. (NAN)

  • Cash crunch hits Katsina despite CBN directive

    Cash crunch hits Katsina despite CBN directive

    Despite the directives by the Central Bank of Nigeria (CBN) compelling commercial banks to make cash available in ATMs, the situation in Katsina State has worsened. 

    The cash shortage is crippling business activities, transportation, and the general standard of living.

    When The Nation visited business outlets, central markets, and POS operators across the state, the common response was “No cash, No cash.” 

    Alhaji Abubakar Kaikai, a major POS operator, shared that only a few banks, particularly comply with CBN directives by dispensing cash, while most others managed to dispense ₦10,000 or none at all.

    He said: ‘’Only when there is deposits to a bank will such a bank dispense cash, they always complain poor cash receipts from Cbn often prevents them from filling their ATMs. 

    ‘’For instance, FCMB bank has for the past four months failed to dispense cash to its customers,  I am even considering closing my account with them. 

    ‘’Most of these commercial banks often complain that the ration they gets from the CBN is hardly enough to share to their other branches. 

    Read Also: Reps to summon CBN governor, bank MDs over POS operators’ identity

    ‘’CBN must increase the financial allocations to commercial banks and promptly sanction banks that fails to come for withdrawals from them regularly, because these banks always blame the CBN for poor dispensation of cash to their customers. ’’

    The POS operator further revealed that borrowing cash from filling stations has become their survival strategy, as most banks have ceased dispensing cash to customers.

  • DBN wins financial inclusion leadership award from CBN

    DBN wins financial inclusion leadership award from CBN

    The Central Bank of Nigeria (CBN) has awarded the Development Bank of Nigeria Plc (DBN) the prestigious Financial Inclusion Leadership Award in recognition of its exceptional efforts in expanding access to financing for Nigeria’s micro, small, and medium enterprises (MSMEs).

    The award was presented during the “Champions of Inclusion Nigeria Financial Inclusion Awards” at the recently concluded International Financial Inclusion Conference (IFIC) 2024, organized by the CBN in collaboration with the World Bank and other stakeholders.

    DBN’s Managing Director/CEO, Dr. Tony Okpanachi, described the recognition as a validation of the bank’s strategic focus on fostering financial inclusion.

    “We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our commitment to expanding access to financial services for all Nigerians,” Dr. Okpanachi said. “This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.”

    He added: “We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services.”

    The Chief Operating Officer of DBN, Mr. Bonaventure Okhaimo, received the award on behalf of the Bank and described it as a significant milestone in the institution’s mission to drive economic growth.

    “This award acknowledges our innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” Mr. Okhaimo said. “It will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.”

    Read Also: Reps to summon CBN governor, bank MDs over POS operators’ identity

    He noted DBN’s commitment to ensuring that more small businesses and startup enterprises in Nigeria gain access to financial services.

    The Financial Inclusion Leadership Award, a highlight of the IFIC, celebrates organizations and individuals advancing the goals outlined in Nigeria’s National Financial Inclusion Strategy 3.0.

    The awards recognize exceptional contributions to actions that broaden access to financial services, especially for low-income and excluded segments, including MSMEs.

    With inadequate funding being a significant challenge for small businesses in Nigeria, DBN’s role in addressing these gaps has been lauded as pivotal to achieving broader economic growth and inclusion.