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  • CBN warns banks against cash hoarding, Naira abuse

    CBN warns banks against cash hoarding, Naira abuse

    The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) against engaging in activities that could hinder the smooth flow of cash during the upcoming Yuletide season.

    In a circular by Solaja, Mohammed J. Olayemi, Acting Director of the Currency Operations Department, the CBN stressed the need for responsible cash distribution and prevention of Naira abuse.

    To ensure compliance, the CBN said it will intensify its monitoring efforts through spot checks and mystery shopping activities, conducted in collaboration with law enforcement agencies.

    DMBs have been advised to implement robust internal controls to account for the disbursement of mint banknotes at their outlets.

    The CBN also encouraged banks to prioritise cash distribution through ATMs to enhance public access to cash.

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    It said any bank found to be hoarding cash, diverting funds or violating the clean note policy will face severe penalties.

    Furthermore, DMBs will be penalized for any cash seized from “hawkers” that can be traced back to their withdrawals.

    It said the initial penalty will be 10 percent of the total value of the withdrawn cash with subsequent offenses incurring incremental penalties of five percent.

    The CBN’s initiatives aim to curb the practice of “hawking” Naira notes, which often leads to abuse and damage to the currency.

    By promoting responsible cash distribution and discouraging unethical practices, the CBN seeks to maintain a stable and efficient financial system and also prevent a repeat of the cash crunch experienced so far in the last two years towards year end.

  • Emefiele: CBN board did not recommend naira redesign to Buhari, says ex-Deputy Gov

    Emefiele: CBN board did not recommend naira redesign to Buhari, says ex-Deputy Gov

    An ex-Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Obiora has said there was no time the board of the bank recommended the 2022 nara redesign to then President Muhammadu Buhari.

    Obiora, who said he once served as a Special Adviser on Economic Matter to a former Governor of the CBN, Godwin Emefiele, disclosed that the CBN board first heard of the naira redesign policy on December 15, 2022.

    Obiora spoke in Abuja on Thursday while testifying as the fifth prosecution witness in Emefiele’s trial on a six-count charge in which he is among others, accused of unlawfully printing new naira notes.

    Led in evidence by lawyer to the Economic and Financial Crimes Commission (EFCC), Rotimi Oyedepo (SAN), Obiora testified virtually via audio-visual means from his base abroad.

    He said: “To the best of my recollection, the first day this policy (naira redesign) was discussed at the board was mid December, 2022. I think it was around December 15, 2022.

    “The Governor (Emefiele) invited the Deputy Governor, Operations and Director, Currency Operations to present that same memo that the Committee of Governors (COG) saw in October. He also informed the board of the President’s approval.

    “I do not recollect any instance of the board making recommendation for Nairan redesign to the President. There was no meeting the board recommended Naira redesign,” he said.

    Earlier the witness said the defendant told the four CBN Deputy Governors about the naira redesign policy at an event in Lagos on October 25, 2022, adding that they advised him against announcing the policy at the event.

    “On 25th October, 2022, we were in Lagos to commemorate the first year anniversary of the digital currency, E-Naira. During the break between the first two sessions of the event, the governor (Emefiele) called the four deputy governors and informed us of plans to redesign the currency.

    “He was wondering if he was going to announce it that day at the event. My personal reaction was that the event may not be the appropriate place. 

    “That was the first time I became aware of the plan. Secondly, my comment was that we would need time to study the policy and make inputs.”

    He added Emefiele told the four Deputy Governors that the reason behind the secrecy of the redesign policy was to ensure its effective implementation.

    Obiora said on October 26, 2022, which was a Wednesday, the day of the  meeting of the CBN’s Committee of Governors (COGs), Emefiele asked the Deputy Governor in charge of operations, Mr Ade Shonubi, to circulate and present a memo for naira redesign, which he (Shonubi) did.

    “The deputy governor, Operations, presented the memo to the COGs and it was deliberated upon. During the discussion, the governor mentioned that he had already had the approval of the President for the policy.

    “After the COGs meeting, the governor and two deputy governors joined a press conference to announce the policy to the public. All this happened on 26th October, 2022,” Obiora said.

    Under cross-examination by Emefiele’s lawyer, Olalekan Ojo (SAN), Obiora confirmed that he had previously worked as technical adviser to former President Goodluck Jonathan. 

    He said at its December 15, 2022 meeting, the CBN board ratified the decision of the COG on Naira redesign policy, saying that, “this ratification is in respect of the redesigned Naira already in circulation.”

    The witness also said he was aware of instances of presidential approval for disbursement of funds to Chad, Niger Republic and the military, which the CBN complied with. 

    He added:  “Such (presidential) request would come to the governor. He would usually let the committee (COG) know and it would be implemented before the board get to know.”

    Obiora said when he was invited for l interrogation by EFCC, he was never shown any bdocument from President Buhari or any officials from the presidency complaining about the redesigned naira notes already in circulation.

    Read Also: Emefiele instructed me not to keep records of collected dollars, says witness

    He agreed with Ojo that one of the reasons for currency redesign is to combat currency trafficking and hoarding.

    At the conclusion of Obiora’s testimony, Oyedepo sought an adjornment, which Ojo did not oppose.

    Ojo however, prayed the court to vacate November 29 which it earlier set for the continuation of the trial.  

    The defence lawyer said the time will afford him the opportunity to attend to his health and to fully participate in his daughter’s wedding, scheduled for November 29.

    Oyedepo did not object, following which Justice Maryanne Anenih adjourned till December 4.

  • 28m Nigerians have no access to banking, says CBN

    28m Nigerians have no access to banking, says CBN

    No fewer than 28 million Nigerians – mostly in the rural areas – have no access to banking, the Central Bank of Nigeria (CBN) said yesterday.

    The apex bank Deputy Governor, Financial System Stability, Philip Ikeazor, who stated this yesterday, added that the CBN and stakeholders have been working tirelessly to reduce the financial exclusion rate.

    The demographics mostly affected by this financial exclusion are: women, youths, rural communities and Micro, Small and Medium Enterprises (MSMEs).

    According to him, as a result of these efforts, the exclusion rate had dropped from 46.3 per cent in 2010 to 26 per cent as of last year.

    He said: “Despite this progress, there are over 28 million Nigerians who still have no access to formal financial products and services and certain challenges persist.”

    Read Also: Enough is enough

    Ikeazor spoke in Lagos at the ongoing 2nd International Financial Inclusion Conference 2024, with theme: “Inclusive Growth—Harnessing Financial Inclusion for Economic Development”.

    The CBN Governor, Olayemi Cardoso, said the ongoing recapitalisation of banks comes with several benefits to the economy.

    He said recapitalized banks will take bigger risks by capturing underserved markets into the financial net.

    In line with its efforts to deepen financial inclusion, the apex bank introduced new minimum capital requirements for banks, the CBN boss said .

    Cardoso added: “This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets.

    “With stronger capital bases, banks can provide more loans and financial products to Micro Small and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have previously struggled to access formal financial services”.

    The CBN on March 28 announced a two-year bank recapitalisation, which began on April 1 and is expected to end on March 31, 2026.

    The recapitalisation plan requires minimum capital of N500 billion, N200 billion and N50 billion for commercial banks with international, national  and regional licences .

    Cardoso said the recapitalisation policy, not only strengthens financial stability, but also serves as a catalyst for inclusive growth.

    “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he said.

    At the event, the CBN launched the Women Financial inclusion Dashboard, Women Entrepreneurs Finance Code and Financial Inclusion of Forcibly Displaced Persons.

    The apex bank chief said financial inclusion has the potential to unlock significant economic growth, particularly through the empowerment of small and medium-sized enterprises (SMEs), women and other vulnerable segments of the population.

    “SMEs are responsible for over 80 per cent of employment in Nigeria, yet many struggle to access the credit needed for expansion. Financial inclusion for SMEs is essential to unlock the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises,” he  added.

    Lagos State Governor Babajide Sanwo-Olu, reiterated the benefits of financial inclusion to businesses and economy.

    The governor, who was represented by Deputy Governor Femi Hamzat, said that financial inclusion is at the centre of economic development.

    He said Nigeria has what it takes to deepen financial inclusion, and support the growth of business and economy.

    Financial inclusion will also support government’s efforts to achieve $1 trillion economy, Hamzat said.

    Cardoso said that women also play a critical role in driving inclusive growth.  Research, according to him,  shows that when women are financially empowered, they reinvest in their families and communities, creating broader socio-economic benefits.

    “Yet, women in Nigeria are disproportionately excluded from the formal financial system. The Central Bank of Nigeria has made significant strides in promoting financial inclusion for women and youth, particularly through frameworks aimed at closing gender gaps and regulatory support for digital platforms that offer easier access to financial services for these vulnerable groups.

    “With programmes aimed at financial literacy, the CBN is also empowering young Nigerians to become financially independent, fostering entrepreneurship, and driving economic growth across the country,” he said.

    One of the most transformative tools for financial inclusion has been the adoption of digital payment channels leveraging mobile technology.

    He said Nigeria’s growing mobile phone penetration provides an unprecedented opportunity to expand access to financial services. Interoperable payment platforms have enabled millions of Nigerians to send payments, save, and access credit without traditional bank accounts.

    “Technological advances have democratized financial services, allowing people in remote areas to participate in the economy and this government is committed to creating an enabling environment for these innovations to thrive, through policies that foster competition, innovation, and financial stability,” he said.

    Cardoso said since the launch of the National Financial Inclusion Strategy (NFIS) in 2012, the CBN in collaboration with partner agencies has championed policies and initiatives to reduce financial exclusion.

    These initiatives have been guided by the vision of ensuring every Nigerian has access to affordable financial services, from basic savings accounts to micro pension and microinsurance offered by other regulated non- bank financial institutions to digital payment platforms.

    Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, said Nigeria financial services regulators want to achieve financial inclusion target they set for themselves because of the immense benefits it will bring to the economy.

    According to him, the NDIC raised the minimum insured deposits to ensure that more Nigerians develop interest in the financial system and also to protect depositors.

    He said that NDIC is committed to ensuring that customers deposits are secured to ensure greater inclusion in the financial system.

  • CBN’s economic stability plan on course, says Cardoso

    CBN’s economic stability plan on course, says Cardoso

    The Central Bank of Nigeria (CBN) yesterday reiterated its commitment to stabilising the economy as the apex bank highlighted the success of the ongoing reforms.

    CBN Governor, Olayemi Cardoso, at a symposium titled: “Promoting stability in an era of economic reforms: The journey so far”, yesterday in Abuja, reviewed the apex bank’s progress and outlined the achievements of his administration, marking the one-year anniversary of the current management team.

    Reflecting on the journey, Cardoso restated CBN’s commitment to stabilising the economy, taming inflation and regaining investor confidence.

    He noted that as part of the plans to revitalise the economy, the CBN has set a target to raise monthly foreign remittances to $1 billion.

    He stated that, despite significant challenges, the bank had made substantial strides, notably stabilising foreign reserves, which recently surpassed the $40 billion mark, the highest level in nearly three years.

    Cardoso said: “The past year was among the most challenging periods in the bank’s history. Yet, it has also been one of transformation, where we tackled a credibility deficit head-on.”

    He acknowledged that while inflation remains high, it is trending downward, a positive indicator that reforms are effectively stabilising the economy.

    The governor gave a detailed overview of the banks inherited challenges, including a slowdown in the Gross Domestic Product (GDP) growth to 2.31 per cent in early 2023, a steep rise in inflation to 24.1 percent by mid-2023, and a ballooning fiscal deficit.

     The CBN’s Ways and Means Advances had reached N22.7 trillion by mid-2023, prompting a policy overhaul to address these issues.

     Additionally, capital importation had slowed, with foreign direct investments and portfolio inflows declining over the past decade. Cardoso stated that multiple exchange rate windows had compounded these challenges, causing revenue losses of N6.2 trillion in 2022.

     He said the CBN raised the Monetary Policy Rate (MPR) by 850 basis points to 27.25 per cent and increased the Cash Reserve Ratio (CRR) for commercial banks to 50 per cent to tackle inflation and promote economic stability.

     Cardoso described these measures as critical to restoring market confidence and addressing inflationary pressures.

     Central to these efforts is the CBN’s 2024-2028 Corporate Strategy, which emphasizes Integrity, Meritocracy, Professionalism, Accountability, Courage, and Tenacity (IMPACT) as its guiding values.

     Part of the strategy includes the elimination of quasi-fiscal interventions in favour of orthodox monetary policies and simplified foreign exchange (FX) windows.

    Read Also: Court stops CBN, AG-F from releasing allocation to Rivers

    The CBN has also implemented new guidelines for Bureau de Change (BDC) operations, aiming to reduce disruptions in the FX market and prevent arbitrage opportunities.

    The bank has also embraced a “Digital-First Initiative,” streamlining operations and cutting costs through automation and data-driven policy tools. This initiative includes the launch of the Integrated Data Collection and Sharing Portal (IDSP) and the establishment of an Investor Relations Unit to foster transparency and a data-centric approach to investment.

    Lagos State Governor Babajide Sanwo-Olu commended Cardoso and the CBN team for their commitment to stabilising the economy.

     He praised their focus on self-assessment and constructive feedback, highlighting the need for collaboration between fiscal and monetary authorities to present a cohesive economic vision.

     CBN Deputy Governor on Economic Policy, Mr. Muhammad Sani Abdullahi, emphasized that the symposium was not merely a celebration but an acknowledgment of the journey undertaken by the CBN’s management team.

     He announced the unveiling of a compendium documenting the bank’s progress, titled: “Promoting stability in an era of economic reforms: The journey so far.”

    This publication, he said, encapsulates the values of resilience, collaboration, and determination driving the institution’s transformative efforts.

     Cardoso expressed optimism about the future, calling for unified leadership and a collective commitment to overcoming economic challenges and advancing the nation’s aspirations.

  • Court stops CBN, AG-F from releasing allocation to Rivers

    Court stops CBN, AG-F from releasing allocation to Rivers

    • Fubara: we will continue working

    The Federal High Court in Abuja yesterday restrained the Central Bank of Nigeria (CBN) and the Accountant General of the Federation from further releasing funds to the Rivers State Government pending when a lawful appropriation act is passed by a validly constituted House of Assembly.

    The court barred banks from allowing the Rivers government and Governor Siminalayi Fubara to withdraw from the state’s accounts.

    Justice Joyce Abdulmalik issued the orders in a judgment on a suit filed by the Rivers State House of Assembly and Martins Amaewhule (as Speaker).

    The plaintiffs alleged unauthorised withdrawal of funds from the Rivers State Consolidated Revenue Funds Account by Fubara.

    But Fubara said he was not bothered by the judgment, and that governance would continue.

    He said efforts by detractors to frustrate his administration would continue to fail.

    CBN, the banks, the Accountant General of the Federation, the governor, the Accountant General of Rivers State, Justice S. C. Amadi (Chief Judge of Rivers State), Justice Adolphus Enebeli (retired) who is the Chairman of the Rivers State Independent Electoral Commission and the Rivers State Government are the defendants in the suit FHC/ABJ/CS/984/2024.

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    Justice Abdulmalik noted that the legality of the budget passed by four members, which Fubara assented to, was invalidated in a January 22 judgment by Justice James Omotosho of the Federal High Court in Abuja.

    She also noted that in the same judgment, which was affirmed by the Court of Appeal on October 10, Justice Omotosho found that Amaewhule was the authentic Speaker.

    Justice Abdulmalik held Fubara’s decision to present the 2024 Appropriation Bill before only four lawmakers grossly violated sections 91 and 96 of the 1999 Constitution.

    Justice Abdulmalik said: “Where there is a dereliction of constitutional order as in this instant case, this court will surely not shy away from its sacred constitutional responsibility to do what it considered just in the circumstances.”

    Justice Abdulmalik granted all the reliefs sought by the plaintiffs, including:

    • A declaration that the first defendant (Central Bank of Nigeria) is not entitled to release any amount, money, fund or revenue standing to the credit of Rivers State in the Consolidated Revenue Fund of Rivers State domiciled at the Central Bank of Nigeria, including all allocations and revenue receipts including from the Federation Account Allocation Committee (FAAC) due to Rivers State from the Federation Account or from any other source to the second defendant or any other bank, being the commercial bankers of Rivers State Government or any other person until the fund has been duly charged with the relevant expenditures by an Appropriation Law duly made by the House of Assembly of Rivers State.

    • A declaration that the first, second and third defendants (CBN and the banks) by themselves or by their servants or agents are not entitled to release or permit the withdrawal of any amount, money, fund or revenue standing to the credit of Rivers State, Rivers State Government, Rivers State Government institutions or agencies (funded through appropriations in the Appropriation Law made by the House of Assembly of Rivers State) including Rivers State Independent Electoral Commission  (the seventh defendant) for any purpose whatsoever until an Appropriation Law has been duly Made by the House of Assembly of Rivers State.

    Judgment least of my problems, says Fubara

    A defiant Fubara dismissed the judgment, describing it as “the least” of his problems.

    Fubara spoke during a special thanksgiving service he organised to celebrate his administration’s resilience amidst rising political crises in the state.

    He said despite the order, contractors and workers would be paid, and councils would get their allocations.

    Fubara said those who ruthlessly attempted to end his administration undemocratically boasted they would boot him out of office within one week but failed woefully.

    The governor said his administration was forging on strongly.

    At the event, which was held at the Main Bowl of Alfred Diette-Spiff Civic Centre along Moscow Road in Port Harcourt Old Township, were thousands of residents, the clergy and gospel singers.

    Fubara said: “If you were not with us, if you had not stood with us, we wouldn’t be here at this hour.

    “A lot of you might not understand what happened on the 30th of October, 2023. It was an assassination to the people of Rivers State, indirectly and an assassination of me directly.

    “Since they can’t kill every one of you, they need to kill one person so that everybody will be declared dead.

    “But somehow, somewhere, by the special grace of God, they failed. And the God that we are thanking today, what they meant for evil, God turned it to good.”

    Fubara slammed his detractors, saying despite their antics, his administration had demonstrated transparency and accountability.

    He said such public financial diligence attracted commendations from BudgIT, a civic-tech organisation, that assessed Rivers as maintaining the number one spot in the 2024 Fiscal Performance Ranking among the 36 states of the Federation.

    He said: “I can tell you, they said we are not going to last for one week, we are here. We have done one year plus. We are also doing the first anniversary of their attack.

    “They said those buccaneers will not leave as local government chairmen. Today, we have the 23 local government chairmen sitting here with us.

    “They said their commissioners should resign so that we will be crippled. Today, we have more than 23 commissioners.”

    “We have shown prudence that we are not here to steal your money; that we are here to be accountable.

    “And yesterday (Tuesday), we saw it, it was declared by BudgIT that Rivers has shown transparency and accountability and has ranked us first.”

    Fubara urged all Rivers people to brace up and be strong as the challenges would be surmounted.

    He said: “So, you don’t need to bother about the stories on social media. That one is the least of your trouble. By tomorrow (today), I am still going to pay my contractors.

    “By tomorrow (today), those of you who have not gotten your salaries, your alert will also come to you.

    “Local Government Chairmen, they have had their JAAC, your money is coming to your accounts.

    “Who is the loser? We are not doing luncheon here to celebrate loss or failure. We are praising God because He is taking us to a higher position.”

    Fubara explained that he sincerely implemented the details of the Presidential Peace Accord, including withdrawing suits, while the other party violated the accord by not withdrawing theirs.

    He said: “If there is any advantage that was taken over us, it is because of our genuine interest in peace.

    “We went to Abuja and Mr President, knowing the importance of peace in Rivers, brought out some conditions.

    “First, we did everything that has to be done with those conditions. We went to court immediately and withdrew our matters, but they did not.

    “And you call yourself honourable when you cannot even obey simple instructions, and you blame it on Fubara.

    “How is Fubara the problem? Fubara is not the problem! It was because we withdrew our matter, even the matter you filed, and we said we didn’t want to continue: you took advantage of it and went and got judgment. Is it not fraud?”

    Fubara said such dishonourable persons should not come to the public to demand that people listen to them.

    He insisted that he acted honourably, believing that the agreement would be binding.

  • 33.9m Nigerians lack financial access, says CBN

    33.9m Nigerians lack financial access, says CBN

    The Central Bank of Nigeria (CBN) has recorded progress in financial inclusion rate with 52 percent of adult Nigerians having formal bank accounts.

    However, 32 percent of the population remains excluded from the formal financial system.

    At the Financial Literacy Fair commemorating the 2024 World Savings Day in Abuja, the CBN disclosed the strides and challenges in the nation’s financial inclusion landscape. 

    Ibrahim Yahaya, Acting Head of the Consumer Protection Department at CBN, said in 2023, 52 percent, or 54.2 million adult Nigerians have recognized bank accounts but an estimated 32 percent, or 33.9 million people, were excluded from the financial system entirely.

    Yahaya further broke down the statistics, revealing that another five percent of the adult population falls within an “other formal” financial inclusion category, while 11 percent are informally included in the financial system. 

    Yahaya stressed the need to instill a culture of savings across all age groups, particularly among youths.

    “Over time, savings have improved significantly,” Yahaya stated, “if you look at it from the deposit side. Deposits in the banking industry have been on the increase, but there are still events that may discourage people from saving. There is a persistent sentiment that income is never enough to meet immediate needs, which affects the ability to save,” he said. 

    To emphasise the importance of savings from an early age, school children were invited to participate in the World Savings Day event. 

    “The main objective of this day is to promote the importance of savings,” Yahaya explained. “By instilling a savings culture among young people, we aim to ensure that they grow up with financial discipline. Encouraging parents to promote this habit in their children can help address eventualities in the future.”

    Yahaya noted that cultivating a habit of saving, even in small amounts, is crucial to preparing for life’s uncertainties. “Life is full of journeys,” he added, “and having savings provides a safety net for any issues that may arise. It’s essential to have a fallback in case of those eventualities.”

    Read Also: Cardoso: CBN will deploy necessary tools to battle inflation

    The CBN official also linked the practice of saving to broader economic benefits, noting that savings contribute to bank deposits, which in turn fuel lending to the real sector, a driver of economic growth. “What we have as deposits is what the banks use to lend out, especially to the real sector, which drives economic growth,” Yahaya said.

    He encouraged Nigerians, particularly the youth, to make saving a habit, regardless of the economic environment. “If you wait to have plenty before you start saving, you may never do it,” he advised. “But if you take it as a habit, setting something aside, even in small amounts, you will see the benefits in the future.”

    Addressing the challenges inflation poses to saving, Yahaya acknowledged that while inflation is particularly difficult in current times, maintaining a saving culture can serve as a buffer. “Inflation has been there, and I know it is more challenging these days. But if saving becomes part of a life attitude, it will help cushion the impact,” he added.

  • Senate strips CBN of powers to recommend appointees into NDIC Board to President

    Senate strips CBN of powers to recommend appointees into NDIC Board to President

    The Senate on Tuesday stripped the Central Bank of Nigeria (CBN) of powers to recommend candidates to the President for appointment as Managing Director/Chief Executive Officer and board members of the Nigerian Deposit Insurance Corporation (NDIC).

    Under the new arrangement, the Red Chamber amended the NDIC Act and gave the President powers to directly appoint qualified persons into the board of the agency without input from the CBN.

    The new provision is contained in the NDIC Act amendment Bill which was read for the third time and passed by the red chamber on Tuesday during plenary.

    The resolution of the Senate followed its consideration and adoption of the recommendations of the Senate Committee on Banking, Insurance and other Financial Institutions that considered the Bill chaired by Senator Adetokunbo Abiru (APC – Lagos East).

    The Bill titled: “Nigeria Deposit Insurance Corporation Act No 33 of 2023,” was sponsored by Senator Adetokunbo Abiru (APC – Lagos East) and all members of the Senate Committee of on Banking, Insurance and other Financial Institutions.

    Presenting the report, Abiru said the amendment Bill was meant to strengthen the capacity of the Nigeria Deposit Insurance Corporation’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.

    He said the bill would also make the NDIC, more effective, safeguard its independence and autonomy and  bring it in line with current realities and best practices.

    He said the Bill consolidated the powers of the President to appoint the Chairman and members of the board of the NDIC while the Central Bank  of Nigeria (CBN) which hitherto recommended prospective appointees to the President would now concentrate on its supervisory roles in the banking sector.

    According to him, the NDIC board based on the new amendment to its Act, would focus on the examination of the banks.

    He noted that despite the fact that the NDIC Act 2023 made substantial improvements to the 2006 Act, its implementation had been contentious.

    He noted that the stakeholders had consistently engaged in series of appeals on the need for an amendment of the Act to address all the issues that have been raised concerning it.

    Abiru said, “The Nigerian Deposit Insurance Corporation (Amendment) Bill, 2024, is thus a critical piece of legislation aimed at strengthening the Nigerian financial system.

    “The proposed amendments will enhance the NDIC’s capacity to safeguard depositors, ensure the stability of financial institutions, and promote trust in the banking system.

    “Given the rapidly evolving nature of the financial sector, this Bill represents a timely response to the challenges and opportunities that lie ahead.”

    Besides, Abiru said that the current Bill would lay to rest once and for all, the claims that the bill that was assented to by former President Muhammadu Buhari, was materially different from what was passed by the 9th National Assembly.

    “To further empower the corporation by guaranteeing its independence in performing its statutory functions in line with Section 1 (3) of the principal Act.

    “The principal (2023) Act curiously restricts the President’s power to appoint the Managing Director and Executive Directors and provides that they are to be to persons recommended by the Central Bank of Nigeria Governor.

    “The (2024) bill (now)  seeks to amend this provision to bring it in line with and in consonance with Mr. President’s power of appointment as enshrined in the Constitution of the Federal Republic of Nigeria 1999 (as amended).

    “The provisions of the Principal Act which makes the Permanent Secretary, Ministry of Finance the Chairman of the Board is also being reviewed.

    “This is because the workload and busy schedule of that office is such that makes such appointment untenable.

    “The importance of the need for the Minister of Finance to constitute an Interim Management Committee for the Corporation within 30 days after the expiration or termination of the tenure of the Board is also introduced in the bill.

    “This is to forestall the recent situation where the Corporation faced challenges in its operations as a result of the absence of a board,”

    Abiru said.

    Abiru said  there was a general agreement among stakeholders of the importance of the NDIC as it was set up for the purpose of the protection of depositors and to guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay their deposits, thereby helping to maintain financial system stability.

    He said, “Considering the above therefore, the general consensus among stakeholders was that it is important that the legal framework is reviewed.

    “This is to make the Corporation more effective to discharge its functions, safeguard its independence and autonomy and to bring it in line with current realities and best practices.

    Read Also: Senate okays refund of N25bn to Kebbi, Nasarawa

    “This is particularly because the Corporation plays a vital role in safeguarding the interests of depositors and promoting confidence in the financial sector.

    “The evolving challenges in the global and domestic banking environments necessitate the amendment of the current law to keep pace with these developments and ensure the NDIC remains fit for purpose.”

    Abiru said over 30 written memoranda and numerous oral submissions were received. All the written memoranda and oral presentations at the hearing supported the bill.

    Senators approved that the Bill be read for third time and passed when the recommendation of the committee was put to voice vote by the Deputy Senate President, Barau Jibrin who presided over plenary.

  • CBN prioritises youth development

    CBN prioritises youth development

    The Central Bank of Nigeria (CBN) has promised to support young people and help develop the next generation of leaders in finance and social sciences.

    CBN Governor, Mr. Olayemi Cardoso, said the bank would focus on giving young professionals the tools they need to succeed in their fields and compete globally.

    During a recent meeting at the CBN Head Office in Abuja, Mr. Cardoso met with the President of the Nigerian Economic Society (NES), Professor Adeola Adenikinju, and other NES and Nigerian Economics Students Association (NESA) officials.

    The discussion focused on working together to create a pool of talented individuals to strengthen Nigeria’s financial system.

    Mr. Cardoso stressed the importance of making economic concepts easier to understand, especially for young economists.

    Read Also: CBN extends suspension of cash deposit fees to march 2025

    According to him, “We need to create more opportunities for youths and give them the tools to succeed and compete globally.”

    He noted the role of young economists in making economic policies clearer and easier to communicate to the public.

    Cardoso also pointed out the need to address the lack of skilled finance professionals in Nigerian universities and said the CBN plans to work with NES and NESA to promote mentorship and skill-building programs.

    Presentations by NES and NESA members at the meeting covered research topics and projects that could help the CBN achieve its goals. Mr. Cardoso expressed hope that working with NES and NESA would create a stronger, more inclusive financial sector driven by talent, innovation, and diversity.

    Professor Adenikinju stressed the importance of mentorship, research support, internships, and using social media to better communicate economic policies.

    NESA President, Comrade Bakre Israel Boluwatife, said NESA is ready to contribute to research on inflation and money supply.

  • CBN extends suspension of cash deposit fees

    CBN extends suspension of cash deposit fees

    The Central Bank of Nigeria (CBN) has again extended the suspension of processing fees on cash deposits till March 31, 2025.

    With the extension, cash deposits of more than N500,000 by individuals and N3million by companies will continue to attract no charge.

    The processing fees were previously set at 2.0 per cent for individual accounts and 3.0 per cent for corporate accounts.

    A review yesterday showed that banks have started sending out notifications to their customers, informing them of the extended grace period.

    Analysts described the extension as a continuation of CBN’s efforts to ease the burden of transaction costs on large cash deposits, initially announced earlier this year.

    The suspension of fees on large cash deposits dated back to May 2024 when the CBN announced that it was halting the application of the charges outlined in its “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,” originally issued in December 2019.

    The processing fees were briefly reinstated on May 01, 2024 and were met with strenuous complaints by bank customers, prompting the apex bank swiftly issued a new circular on May 06.

    Read Also: CBN pushes for youth empowerment, skills development in finance

    Signed by Adetona Adedeji, Director of Banking Supervision, the circular suspended the fees until September 30. The suspension has now been extended to March 31, 2025.

    Market analysts said CBN’s decision to extend the suspension has come at a critical time for Nigeria’s banking sector.

    According to analysts, the extension of the fee suspension is part of moves to encourage customers to continue depositing large sums of cash into the banking system, thereby boosting liquidity.

    Also, the suspension is expected to provide a significant relief for large depositors and encourage them to keep their funds within the formal banking system.

    The extension of suspension comes against the backdrop of Nigeria’s ongoing economic reforms. The CBN has been working to stabilise the financial system amid inflationary pressures, exchange rate fluctuations, and other macroeconomic challenges.

    By maintaining the suspension, the CBN aims to sustain confidence in the banking sector, ensuring that both individual and corporate customers feel secure in depositing their funds without incurring additional costs.

    The move is also part of broader efforts to promote financial inclusion and digital transactions. By eliminating fees on large cash deposits, the CBN hopes to encourage more Nigerians to embrace the formal banking sector, reducing the reliance on cash-based transactions.

  • CBN extends suspension of cash deposit fees to march 2025

    CBN extends suspension of cash deposit fees to march 2025

    The Central Bank of Nigeria (CBN) has once again extended the suspension of processing fees on cash deposits above N500,000 for individuals and N3,000,000 for corporates until March 31st, 2025. 

    This latest decision allows individuals and corporate entities to continue depositing cash exceeding these thresholds without incurring additional charges until the end of the first quarter of next year.

    Banks across Nigeria have started sending out notifications to their customers, informing them of the extended grace period. This is a continuation of the CBN’s efforts to ease the burden of transaction costs on large cash deposits, initially announced earlier this year.

    The suspension of fees on large cash deposits dates back to May 2024 when the CBN announced that it was halting the application of the charges outlined in its “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions,” originally issued in December 2019. 

    The processing fees, set at 2 percent for individual accounts and 3 percent for corporate accounts, were previously applied to any cash deposits exceeding N500,000 and N3,000,000, respectively.

    However, after briefly reinstating these charges on May 1st, 2024, some confusion arose among bank customers, who were suddenly faced with fees on their large deposits. In response, the CBN swiftly issued a new circular on May 6th, 2024. 

    Signed by Adetona Adedeji, Director of Banking Supervision, the circular confirmed the suspension of these fees until September 30th, 2024, a timeline that has now been extended to March 31st, 2025.

    Impact of the Fee Suspension

    The CBN’s decision to extend the suspension has come at a critical time for Nigeria’s banking sector. The extension of the fee suspension is widely seen as a move to encourage customers to continue depositing large sums of cash into the banking system, thereby boosting liquidity.

    Read Also: CBN pushes for youth empowerment, skills development in finance

    In line with this, banks have urged their customers to take advantage of the extended suspension. Depositors who exceed the N500,000 threshold for individuals or the N3,000,000 threshold for corporate accounts will continue to avoid the 2 percent and 3 percent processing fees previously levied on such transactions. This is expected to provide a significant relief for large depositors and encourage them to keep their funds within the formal banking system.

    The decision to extend the suspension comes against the backdrop of Nigeria’s ongoing economic reforms. The CBN has been working to stabilize the financial system amid inflationary pressures, exchange rate fluctuations, and other macroeconomic challenges. 

    By maintaining this suspension, the CBN aims to sustain confidence in the banking sector, ensuring that both individual and corporate customers feel secure in depositing their funds without incurring additional costs.

    The move is also part of broader efforts to promote financial inclusion and digital transactions. By eliminating fees on large cash deposits, the CBN hopes to encourage more Nigerians to embrace the formal banking sector, reducing the reliance on cash-based transactions.