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  • CBN to Nigerians: your money is safe in banks

    CBN to Nigerians: your money is safe in banks

    The Central Bank of Nigeria (CBN) has dismissed rumours suggesting a possible government takeover of Union Bank, Keystone Bank, and Titan Trust Bank – all under the regulatory purview of the CBN.

    In a statement signed by the Ag. Director of Corporate Communications, Mrs. Hakama Sidi-Ali, the CBN categorically refuted the assertions and underscored the robustness and security of Nigeria’s banking landscape.

    “These reports have not originated from the CBN,” the statement emphasised the statement, cautioning the public against undue alarm due to unverified information. 

    It reiterated the CBN’s unwavering dedication to its mandated responsibility of upholding a resilient and secure financial system within Nigeria.

    Confident of the safety of funds entrusted in Nigerian financial institutions, the CBN stated: “We guarantee the safety of the public and depositors’ funds.” Encouraging regular banking activities without concern, the CBN affirmed there is no cause for apprehension.

    Read Also: CBN investigator invites Lemo, others over Union Bank acquisition

    The statement read: “Central Bank of Nigeria (CBN) has noticed reports, in certain media outlets, about a recommendation for the Federal Government to take over some CBN-supervised financial institutions.”

    “For the avoidance of doubt, Nigerian banks remain safe and sound. The CBN encourages the public to continue their regular activities without being alarmed by reports that have not emanated from the CBN about the health status of Nigerian banks.

    “The CBN is fully equipped to carry out its statutory duty of upholding a stable financial system in Nigeria. We assure the general public and depositors about the safety of their funds in Nigerian financial institutions.

    “Bank customers are therefore advised to proceed with their banking transactions as usual, as there is no cause for concern.”

  • CBN investigator invites Lemo, others over Union Bank acquisition

    CBN investigator invites Lemo, others over Union Bank acquisition

    The chairman of Titan Trust Bank (TTB), Babatunde Lemo, has been summoned by the Special CBN Investigator, Jim Obazee in connection with the acquisition of Union Bank of Nigeria Plc by TTB.

    Lemo, a former deputy governor of the Central Bank of Nigeria, was directed to appear at the Department of Force Intelligence in Abuja on Thursday, December 28 where he would be questioned over the UBN acquisition.

    The TTB chairman was also instructed to come along with the promoters of the bank, Messrs Cornelius Vink and Mr Rahul Savara, to meet with the team of special Investigators.

    The Nation gathered that Lemo was invited in a letter dated December 24, 2023, and signed by the head of operations, office of the special investigator.

    The special investigator had in his report alleged that some persons were used as proxies by a former CBN Governor, Godwin Emefiele, to set up Titan Trust Bank and acquire Union Bank.

    Obazee, who was appointed special investigator in July 2023, submitted his final report tagged, ‘Report of the Special Investigation on CBN and Related Entities (Chargeable offences) to the Presidency on December 20, 2023.

    In two separate reports on the acquisition of UBN and Keystone Bank submitted to President Bola Tinubu last Wednesday, the Special Investigator also alleged that Emefiele used proxies to acquire Keystone Bank without evidence of payment, the Special Investigator, DCP Eloho Okpoziakpo.

    However, Lemo insisted that the establishment of TTBand the subsequent acquisition of Union Bank were transparent and duly verified by the relevant regulatory bodies.

    In furtherance of the investigation into the UBN deal, and in response to Lemo’s defence, the investigator in the letter titled, ‘RE: CBN investigation activities: Invitation for a follow-up meeting with the Special Investigator,’ took the TTB chairman to task on his defence.

    The letter read in part: ‘’Please, refer to your discussion with the Special Investigator earlier today regarding the offensive defence that your good self issued in PUNCH newspapers, on behalf of TTB which you chair, as well as the email you sent to the Special Investigator today wherein you tried to provide clarification on your reaction to the report on TTB.

    ‘’The defence seems contrary to the statements, made under caution, by the persons connected with these transactions, including your good self, before the Special Investigator at the Department of State Service in August 2023.

    ‘’In the said newspapers, you referred to both Cornelius Vink and Rahul Savara as “prominent global entrepreneurs and having thriving businesses in Nigeria…”

    ‘’In your email as well as your earlier discussion with the Special Investigator, you suggested that both of them be invited to provide clarification on their share ownership and given seven days to make such clarification; failure which they will forfeit their shares to the Federal Government of Nigeria.

    ‘’We are surprised at your request with regard to these two shareholders. They were given this opportunity via a letter to them dated 28th August 2023 (copy attached as Appendix 1).

    Read Also: CBN and call for hike in MPR

    ‘’Instead of honouring the invitation and providing the requested documents, we received a letter from the Company Secretary of Union Bank, Somuyiwa Sonubi, dated 1st September 2023, informing the Special Investigator that Mr. Cornelius Vink was out of the country on medical grounds and that both “Messrs Vink and Savara will be available for the meeting as soon as they are in Nigeria which will be soon” (copy attached as Appendix 2).

    ‘’Up until this offensive defence that you put in the public domain, the Special Investigator has neither heard from them nor received the requested documents.”

  • CBN and call for hike in MPR

    CBN and call for hike in MPR

    Sir:  Recently, the International Monetary Fund (IMF), through her Director of Communication, Ms Julie Kozack, advised the CBN to further hike its Monetary Policy Rate (MPR), which currently stands at a very high 18.75%, at its next Monetary Policy Committee (MPC) meeting.

    It is worth noting that every rates, including commercial banks’ lending rates, flows from the CBN MPR, with an upward adjustment for risks and margin. So currently, the banks lend to their customers and investors at between 25% to 30% or even more, depending on the credit risk of the potential borrower. It is evident that no productive investor will take loan at those prohibitive rates, when you consider that the macro-economic business climate is toxic- no roads, no power, water and general insecurity. So what you have, or those who are ready to borrow funds in Nigeria are speculators and quick turnover traders- no productive activities.

    Investors are not borrowing funds for investment resulting in low manufacturing contribution to GDP growth and even disinvestment by many exacerbating the worrisome unemployment levels.

    I agree that in conventional monetary economics, you have to tighten money supply to tame escalating inflation, like we have in Nigeria at over 27% as at October but it worth nothing that Nigeria’s inflation is not the type you have in Europe and North American nations. Our inflation is imported inflation, resulting from negative terms of trade and Balance of Payment disequilibrium. In other words, Nigerian inflation is “Cost Push,” not “Demand Pull,” which traditional excess liquidity engenders.

    Read Also: Emefiele, Mustapha, TIG tackle CBN investigator

    It’s time for Nigeria to shun IMF ill-advised policies. Nigeria has been on the tailspin since 1986 when the Babangida regime bought the IMF advice to float and devalue the naira exchange rate to the US dollar. From N4 to a $1 in 1986 to N1,200 to a dollar today, the consequences have been dire- wiping out of the middle class, spiralling imported inflation; mass poverty and crime- banditry, kidnapping etc. and Japa syndrome.

    When will our economists and slavish CBN learn that IMF does not mean well for developing countries?

    For a country with so high and prohibitive interest rates- killing SMEs and deterring start-ups and causing unemployment, the IMF is advising MPC of the CBN to further hike the rates, to make borrowing to finance investments out of reach of average investor, is more like committing economic hara-kiri.

    • Chief Tony Onyema Ishiekwene, Lagos.
  • CBN lifts ban on crypto-currency transactions

    CBN lifts ban on crypto-currency transactions

    The Central Bank of Nigeria has lifted ban on crypto currency transactions in the country.

     The apex bank has thus instructed commercial banks to jettison its previous instruction  on crypto transactions.

    The information was contained in a circular titled ‘Circular to all Banks and other Financial Institutions Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPS).’

     The circular was dated December 22, 2023, with reference number FPR/DIR/ PUB/CIR/002/ 003.

    It was  signed by the CBN’s  Director, Financial Policy and Regulation Department, Haruna Mustafa.

     The circular reads: “The CBN, in February 2021  issued a circular restricting banks and other financial institutions from operating accounts for cryptocurrency service providers in view of the money laundering and terrorism financing (ML/TF) risks and vulnerabilities inherent in their operations as well as the absence of regulations and consumer protection measures.

    Read Also: TUC to CBN: End naira scarcity now or face industrial action

    “However, current trends globally have shown that there is a need to regulate the activities of virtual assets service providers (VASPs) which include cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force (FATF) in 2018 also updated its Recommendation 15 to require VASPS to be regulated to prevent misuse of virtual assets for ML/TF/PF.

    “Furthermore, Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022 recognises VASPs as part of the definition of a financial institution.

     “In addition, the Securities and Exchange Commission in May 2022 issued Rules on Issuance, Offering and Custody of Digital Assets and VASPs to provide a regulatory framework for their operations in Nigeria.

     “In view of the foregoing, the CBN hereby issues this guideline to provide guidance to financial institutions under its regulatory purview in respect of their banking relationship with VASPs in Nigeria.”

  • TUC to CBN: End naira scarcity now or face industrial action

    TUC to CBN: End naira scarcity now or face industrial action

    The Trade Union Congress of Nigeria (TUC) has asked the Central Bank of Nigeria (CBN) to put an end to the naira scarcity across the country. 

    The Congress said its affiliates and allies would be forced to consider exploring “our usual options whenever the working people are pushed to the wall.”

    The TUC said this in a statement signed by its president, Festus Osifo and General Secretary, Nuhu Toro, on Friday, December 22, in Abuja.                                                           

    The statement reads: “The Trade Union Congress of Nigeria has watched with growing concern, alarm and dismay the sudden, inexplicable, acute scarcity of our currency, the Naira, across the country. Citizens simply find it difficult to access the Naira from banks and their outlets (especially the Automated Teller Machines, A. T. M). Consequently, they are being forced to patronize extortionist P. O. S operators who charge Shylock rates.

    Read Also: Reps invite CBN Governor, Finance Minister over naira scarcity

    “We are amazed that the Central Bank of Nigeria is finding it extremely difficult to make our currency available to the working people and the citizens.

    “To say the least, this is unfortunate and unacceptable. Nigerians have continued to be subjected to needless excruciating hardship by insensitive and heartless agents and agencies of government, whose actions and inactions are really difficult to fathom and impossible to defend. What is the offense of the ordinary Nigerians that they have to face so much pains and tribulations without let off, even in this solemn Yuletide season? 

    “The President Tinubu Administration must move pronto and decisively and for once get its monetary and fiscal policies right and working in the interest of the long-suffering people.

    “This Naira scarcity must end now!!! Otherwise, the TUC, its affiliates and our allies, would be forced to consider exploring our usual options whenever the working people are pushed to the wall.”

  • Reps invite CBN Governor, Finance Minister over naira scarcity

    Reps invite CBN Governor, Finance Minister over naira scarcity

    • Apex bank warns banks, PoS Agents against collusion
    • Traders hoard naira

    The House of Representatives yesterday summoned the Minister of Finance and National Planning and Budget and Governor of the Central Bank of Nigeria (CBN) to explain why commercial banks are not paying customers over the counter and Automated Teller Machines (ATMs).

    The House also urged the CBN to immediately commence proper monitoring and supervision of commercial banks’ activities daily to ascertain the extent of counter payment to customers.

    The lawmakers mandated its Committees on Banking Regulations and Digital and Electronic Banking to invite the Minister and CBN Governor, while also calling on Point-of-Sales (POS) operators to stop selling naira notes. They called on the PoS operators to immediately remove excessive charges on transactions.

    These resolutions followed the adoption of a motion titled, “Need to Curb the Sale of Naira Notes by the Point-of-Sales (POS) operators in Nigeria” moved by Hon. Mohammed Dan Abba Shehu.

    The summon came as the apex bank issued a strong warning to banks and PoS operators suspected to engage in “inappropriate actions” and potential “collusion” affecting the availability of cash and smooth circulation of the naira.

    The alleged collusive practices, currently under investigation by the CBN, were believed to be contributing to the ongoing cash crunch experienced by Nigerians. The apex bank has assured the public that it will not tolerate such behavior and will mete out “relevant sanctions” to any parties found culpable.

    In a press release issued yesterday and signed by CBN spokesperson, Mrs. Hakama Sidi-Ali, the apex bank urged both banks and PoS operators to immediately cease any activities disrupting the free flow of cash in the economy, especially the practice of “hoarding” of naira notes.

    The CBN encouraged Nigerians to embrace alternative payment channels beyond cash, promoting a more efficient and digital financial system.

    According to the apex bank, to facilitate this shift, the public should report any instances of unauthorised cash restrictions or suspicious activities by banks or PoS agents directly at any CBN branch nationwide or through designated online platform.

    A high-level source at the CBN had linked some staff of commercial banks and farmers as major contributors to the cash crisis.

    According to a high-level source within the apex bank, who spoke to The Nation on condition of anonymity, an internal investigation unearthed a web of nefarious practices fueled by both greed and fear.

    Shockingly, the investigation revealed that some commercial bank staff are actively diverting cash meant for customers to their own personal PoS machines. This insider scheme, fueled by the ownership of PoS businesses by bank employees, effectively siphons money away from legitimate channels, exacerbating the cash shortage faced by Nigerians.

    Adding to the challenge, the truncated new naira policy triggered anxiety among some citizens, prompting them to hoard cash rather than deposit it in banks. Similarly, the end-of-year harvest season sees farmers, traditionally accustomed to cash transactions, holding onto their earnings outside the formal banking system.

    While official withdrawal limits allow for sizeable cash withdrawals, POS operators continue to struggle for access. The source revealed that banks prioritize cash for their own ATMs and internal needs, leaving POS operators high and dry. This creates a bottleneck, forcing desperate operators to seek alternative, often expensive, sources of cash like fuel stations and shops.

    Read Also: Yuletide: Don’t think of vacation this season, we’ve burden of Nigerians on our shoulders, Shettima tells NEC

    The problem deepens with reports of individuals using multiple cards to withdraw large sums from ATMs, particularly at night, depleting available cash quickly. Banks, in response, adjust loading frequencies, further tightening the tap for the average customer. The issue is further compounded by the circulation of “unusable cash,” damaged or unfit for ATM use.

    Commercial banks in Umuahia, the Abia State capital and their counterparts in Aba, the commercial nerve of the state have further reduced their customers cash withdrawal limits.

    Our correspondent who monitored the current development in the state reports that most commercial banks as at Wednesday, were dispensing N20,000 daily limit to customers using their Automated Teller Machines (ATMs), while they pay same amount to customers through the counter.

    Customers of other commercial banks were subjected to daily withdrawal of N10,000 of N5,000 per withdrawal.

    Our correspondent reported that things improved yesterday as most of them now pay N50,000 across counter to their customers, while their ATMs still dispense daily withdrawal of N20,000 for bank’s customers while customers of various banks were limited to N10,000 withdrawal on two tranche.

    One of the commercial banks in Abia State Polytechnic, Aba de-selected other options leaving their ATM users with the N5,000 option alone; for both customers and other ATM user.

    One of the commercial bank staff who spoke to our correspondent on anonymity said that the decision to start paying their customers N50,000 because they were able to get more money from the CBN’s office in Umuahia, the state capital.

    According to the source, the bank dispenses money depending on the amount of money they received from the CBN.

    The Nation investigation revealed that operators of Point Of Sale (POS) outlets now buy money from traders in various markets who now prefer to keep their money in their shops than taking them to the bank.

    A trader who gave his name simply as Chukwuemeka said that their reason for keeping cash in their shops is to avoid the limited amount of money that banks give them.

    Chukwuemeka who stated that they also receive bank transfer from their customers or shoppers that visit their shops, said it was optional for any trader to stockpile money for POS operators.

    This is even as he added that he has a POS stand where he supplies the cash he made from his daily with little charge above what they charge in the time past.

    A resident of Aba who just returned from a journey in Okigwe, said she paid as much as N6,000 for N20,000 by a POS operator.

  • CBN: banks breach loan limit regulation

    CBN: banks breach loan limit regulation

    • Recapitalisation will aid $1tr economy target

    Commercial banks have not been complying with Central Bank of Nigeria (CBN) loan limit rule for single borrowers, the apex bank Governor, Olayemi Cardoso, said yesterday.

    Cardoso spoke at the Nigeria Sustainability Summit 2023, with the theme: “Crisis-resilient and new Nigerian economy”.

    The CBN boss, who was represented by the bank’s Director on Financial Policy and Regulation, Haruna Bala Mustafa, said banks breach the single obligor limit policy.

    The policy stipulates a maximum amount that each lender can give to a single borrower based on its shareholders funds.

    By the regulations governing the single obligor limit, a bank is not allowed to grant more than 20 per cent of its shareholders funds to any one person (natural person or corporate body) including the subsidiaries, associates and the related parties of such a person. The policy was created by the apex bank to prevent lenders from giving excessive credit to a single borrower.

    Cardoso said the apex bank took the decision for a fresh recapitalisation of banks because the country needed a banking sector that would be able to handle global transactions.

    He said: “There is the need to take a second look at the existing capital regime. Recently, a number of policies were rolled out that had an impact on the banking system. One was the removal of subsidy on petrol and the second was the recent forex unification.

    “Currently, because of the impact of some of these policies, we have seen banks breaching some of the key metrics, such as single obligor limits for instance, because this is a function of capital.

    “You couldn’t fund a transaction without us looking at your exposure to a single borrower. These are some of the protective rules that we put in place to check banks.

    “Let us go back to 2005 when Prof.  Chukwuma Soludo increased banking capitalisation from N2 billion to N25 billion to strengthen Nigerian banks to play on the global stage. If you recall, we had a motley crowd of 89 mostly weak banks that could not fund a big ticket transaction.

    “Back to the traditional function of capital which is to cushion and absorb unexpected losses, it was as if the governor then saw tomorrow,   just two years down the line, global financial crisis hit erupted.

    “And but for that proactive move, the second round effect of that crisis would have wiped off a number of banks and that would have had  disastrous consequences for the stability of the Nigerian banking system.”

    He said the planned bank recapitalization will enable the country achieve the $1 trillion economy target set by the Federal Government.

    Read Also: CBN advises banks to improve product quality for customer retention

    Cardoso said the CBN’s commitment to sustainability is total.

    “It has been 10 years since we started sustainability banking principles, which is a voluntary initiative and it has been advisory. There is an ongoing effort to come up with regulations around climate related risks. It is not yet official but I think it mirrors the trend globally.”

    Also speaking, Head, Group Sustainability, Access Holdings Plc, Mrs. Omobolanle Victor-Laniyan, said there was urgent need for a sustainable approach to development.

    According to her, the private sector has a pivotal role to play, leveraging its resources, innovation, and influence to drive positive change.

    She said: “It is in this spirit that we convene the Nigerian Sustainability Summit, to harness the expertise, resources, and innovation within our reach.

    “Today, we come together under the theme: ‘Crisis resilience and the new Nigerian economy.’ This, for us, serves as a call to action, urging us to collaborate, and devise strategies that will position Nigeria at the forefront of the charge towards achieving Africa’s sustainability objectives.

    “We acknowledge the challenges that have hindered sustainable development in Nigeria, but we stand united in our determination to overcome them. Within these challenges lie opportunities for progress and transformation.

    “The private sector, with its dynamism, influence, and commitment, holds the key to driving meaningful change that will positively impact the environment, society, and our economy.”

    According to Victor-Laniyan, meaningful partnerships, like the one we foster today, create an ecosystem conducive to sustainability.

    “Together, we can promote environmentally friendly practices, drive economic growth, and enhance the quality of life for every Nigerian.

    “By leveraging our collective strengths, advocating sustainable policies, and implementing innovative solutions, we can pave the way for a brighter, more sustainable future.”

    Defaulting banks to face additional loan loss provisions

    According to CBN’s Prudential Guidelines for Commercial Banks, non-compliance with a bank’s established policy on credit concentration and monitoring shall form a basis for supervisory action which may include additional loan loss provisions.

    The guidelines said limits shall be defined in relation to a bank’s capital, total assets or, where adequate measures exist, its overall risk level.

    According to the CBN guidelines, 50 per cent of a bank’s off-balance sheet engagements shall be applied in determining the bank’s statutory limit to a single obligor while the total outstanding exposure (on and off-balance sheet) by a bank to all tiers of government and their agencies shall not at any point in time exceed 10 per cent of the total credit portfolio.

    The guidelines said: “In assessing credit risk concentration of a bank, the CBN will consider the credit concentration policy, the credit portfolio plan and the extent to which the bank considers credit concentration as part of the subjective factors in making specific provisions.”

  • CBN advises banks to improve product quality for customer retention

    CBN advises banks to improve product quality for customer retention

    The Central Bank of Nigeria (CBN) has advised banks to improve the quality of their products and services to attract more people into the financial system.

    CBN Governor, Olayemi Cardoso, disclosed this at the release of the 2023 EFInA Access to Finance (A2F) Survey results in Lagos.

    He said: “As an ecosystem, we must redouble our efforts to develop innovative solutions to enable inclusion and be intentional about how we do it. For instance, the access points effective for included populations might not be suitable for those currently excluded. The products and services that we have developed to get us this far will need refinement to ensure that they are fit for purpose for the next phase of this journey.”

    According to him, the Nigerian financial system has evolved with significant improvements in size and depth, especially in the areas of market development, products, instruments, and payment infrastructure, among other things, thus, reinforcing the need for us as regulators and stakeholders to constantly keep pace with these emerging developments in a sustainable manner.

    Cardoso, who was represented by, CBN Director, Other Financial Institutions Supervision Department, Chibuike Nwagerue, lauded all financial inclusion stakeholders for the efforts made and the progress achieved.

    “However, to achieve the target of 95 percent financial inclusion, we must all move from collaboration to concrete commitment. To that effect, I call on all Financial Inclusion implementation agencies to set up specific functions or units dedicated to financial inclusion in their various organizations. This we believe, will provide the necessary ownership and commitment required to achieve our collective goal,” he said.

    Cardoso, who spoke on the theme: Building a More Inclusive and Sustainable Economy: The Role of Financial Inclusion” said financial inclusion is a key developmental objective and a global initiative recognized by several countries worldwide.

    Read Also: Shettima inaugurates core working group on fight against malnutrition

    “To buttress the importance of Financial Inclusion to National development, over 68 countries have developed and are currently implementing a National Financial Inclusion Strategy. At its core, financial inclusion provides the opportunity for equitable distribution of financial resources to support economic growth. It also contributes to the attainment of the Central Bank’s goals of monetary policy and price stability. An inclusive financial system that allows broad access to a wide range of formal financial services is essential for better transmission of monetary policy and in the attainment of its objectives,” he said. The report shows the Northern Nigeria has the least access to financial services.

    The report disclosed that exclusion from financial services continues to be most severe in Northern Nigeria, at 38 percent in the North East and 47 percent in the North West compared to only five percent in the South West and 10 percent in the South-South.

    The A2F survey is Nigeria’s primary source of financial inclusion data and is designed to assess access to and use of financial services for the adult (18+) Nigerian population. The methodology for the 2023 survey has been updated to reflect changing population dynamics, and 2018 and 2020 data have also been updated using the same methodology to enable comparison.

    The 2023 results show that 26 percent of Nigerians are financially excluded, down from 32 percent in 2020, demonstrating clear progress towards the Nigeria Financial Inclusion Strategy (NFIS 3.0) recommended target to reduce levels of financial exclusion in Nigeria to 25 percent by 2024.

    The report said usage of broader financial services remains limited demonstrating the urgent need to focus on the quality and impact of inclusion. While credit use doubled to six percent, pension and insurance use remained at eight percent and three percent respectively, well below 2024 target levels.  

    Commenting on the results of the Survey, EFiNA Chair Dr. Agnes Martins said: “We are seeing encouraging progress towards the NFIS 3.0 recommended goal to reduce exclusion to 25 percent by 2024, and we must acknowledge all the good work that has gone into making this happen. However, we also have to be clear that 26 per cent exclusion means that 28.8 million adult Nigerians continue to be completely excluded from the financial system.

  • CBN directs banks to raise financial products quality

    CBN directs banks to raise financial products quality

    The Central Bank of Nigeria (CBN) has directed banks to raise the quality of their products and services to attract more people into the financial system.

    CBN Governor, Olayemi Cardoso, disclosed this at the release of the 2023 EFInA Access to Finance (A2F) Survey results in Lagos.

    He said: “As an ecosystem, we must redouble our efforts to develop innovative solutions to enable inclusion and be intentional about how we do it.

    For instance, the access points effective for included populations might not be suitable for those currently excluded. The products and services that we have developed to get us this far will need refinement to ensure that they are fit for purpose for the next phase of this journey.”

    Read Also; Sanwo-Olu promises medical palliatives to residents

    According to him, the Nigerian financial system has evolved with significant improvements in size and depth, especially in the areas of market development, products, instruments, and payment infrastructure, among other things, thus, reinforcing the need for us as regulators and stakeholders to constantly keep pace with these emerging developments in a sustainable manner.

    Cardoso, who was represented by, CBN Director, Other Financial Institutions Supervision Department, Chibuike Nwagerue, lauded all financial inclusion stakeholders for the efforts made and the progress achieved.

    “However, to achieve the target of 95 percent financial inclusion, we must all move from collaboration to concrete commitment. To that effect, I call on all Financial Inclusion implementation agencies to set up specific functions or units dedicated to financial inclusion in their various organizations. This we believe, will provide the necessary ownership and commitment required to achieve our collective goal,” he said.

    Cardoso, who spoke on the theme: Building a More Inclusive and Sustainable Economy: The Role of Financial Inclusion” said financial inclusion is a key developmental objective and a global initiative recognized by several countries worldwide.

    “To buttress the importance of Financial Inclusion to National development, over 68 countries have developed and are currently implementing a National Financial Inclusion Strategy. At its core, financial inclusion provides the opportunity for equitable distribution of financial resources to support economic growth. It also contributes to the attainment of the Central Bank’s goals of monetary policy and price stability. An inclusive financial system that allows broad access to a wide range of formal financial services is essential for better transmission of monetary policy and in the attainment of its objectives,” he said. The report, which shows the Northern Nigeria has the least access to financial services.

    The report disclosed that exclusion from financial services  continues to be most severe in Northern Nigeria, at 38 per cent in the North East and 47 per cent in the North West compared to only five per cent  in the South West and 10 per cent in the South South.

    The A2F survey is Nigeria’s primary source of financial inclusion data and is designed to assess access to and use of financial services for the adult (18+) Nigerian population. The methodology for the 2023 survey has been updated to reflect changing population dynamics, and 2018 and 2020 data also updated using the same methodology to enable comparison.

    The 2023 results show that 26 per cent of Nigerians are financially excluded, down from 32 per cent in 2020, demonstrating clear progress towards the Nigeria Financial Inclusion Strategy (NFIS 3.0) recommended target to reduce levels of financial exclusion in Nigeria to 25 per cent by 2024.

    The report said usage of broader financial services remains limited demonstrating the urgent need to focus on the quality and impact of inclusion. While credit use doubled to is six per cent, pension and insurance use remained at eight per cent and three per cent respectively, well below 2024 target levels.

    Commenting on the results of the Survey, EFiNA Chair Dr Agnes Martins said: “We are seeing encouraging progress towards the NFIS 3.0 recommended goal to reduce exclusion to 25 per cent by 2024, and we must acknowledge all the good work that has gone into making this happen. However, we also have to be clear that 26 per cent exclusion means that 28.8 million adult Nigerians continue to be completely excluded from the financial system.

  • Inflation, exchange rate to decline in 2024, says CBN

    Inflation, exchange rate to decline in 2024, says CBN

    The Central Bank of Nigeria (CBN), on Thursday, December 14, declared in Abuja that rising inflation and exchange rates in the country will drastically reduce in 2024.

    The apex bank also projected less revenue from oil exports in the 2024 fiscal year, just as it declared that total trade from the Nigerian Foreign Exchange Market (NFEM), stood at N18.804 billion in the third quarter (Q3) of 2023.

    The governor of the CBN, Olayemi Cardoso, made the assertions in his presentation at the National Assembly Joint Committee on Banking, Insurance, and Other Financial Institutions.

    Cardoso explained to members of the joint committee from both chambers of the National Assembly, that the outlook for the domestic economy in Nigeria for 2024 is very positive as both the inflation and exchange rates, would withstand fluctuating pressures on them and get stabilized.

    Cardoso said: “The outlook for the domestic economy remains positive and is expected to maintain a positive trajectory for 2024.

    “Inflationary pressures may persist in the short term but are expected to decline in 2024.  Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market.”

    He told the committee that the unification of the exchange rate windows in June 2023, has ushered in a new approach to the management of the exchange rate, aimed at reducing arbitrage, rent-seeking behaviour and speculation in the market.

    Cardoso said: “The policy aims at creating a market where the demand and supply of foreign exchange determines the exchange rate.

    “The premium has narrowed and our focus on increasing the autonomous FX supply would lead to more stability and further narrowing of the premium.

    “Total Trade in the third quarter of 2023, stood at N18.804.68billion. Exports were valued at N10.346.60 billion while total imports stood at N8.457.68 billion.

    “This represents a positive trade balance which would lead to an increase of the external reserves.”

    He however stated that due to domestic prevailing factors, less revenues would be earned from oil exports in 2024.

    He said: “We expect less revenue from oil exports due to the production limit of 1.78mbpd in 2024. The OPEC-approved quota for Nigeria is 1.8mbpd, which is higher than the 2024 budget assumption.

    “However, the country’s production has been below these thresholds. The budget benchmark for 2023 was 1.69mbpd, but the highest level of production during the year was about 1.35mbpd in Q3 of 2023.

    Read Also: Cash scarcity: N3.4tr in circulation – CBN insists

    “The reasons for the underperformance of the oil production target include crude oil theft and pipeline vandalization, production shut-ins, and divestments by major oil companies.”

    Earlier, before the CBN Governor’s presentation, the Chairman of the joint committee,   Senator Tokunbo Abiru (APC-Lagos East), said the interactive session was organized for the statutory briefing by CBN in line with extant laws.

    The co-chairman of the committee, Hon Bahir Bello El-Rufai, in his remarks, commended the CBN governor and the entire management team on measures being put in place to stabilise the economy generally.