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  • CBN warns public against fake EDIs

    The Central Bank of Nigeria (CBN) yesterday warned the public against ongoing exploitation of Nigerians by fake Entrepreneurship Development Institutions (EDIs).

    The institutions, the apex bank said in a statement,   are claiming to be CBN-accredited EDIs for Agri- Business Small and Medium Enterprises Investment Scheme (AGSMEIS).

    It said the unaccredited bodies have continued to defraud and exploit members of the public by advertising for courses and charging training fees ranging on the pretext that the training is endorsed by the CBN and therefore would guarantee easy access to AGSMEIS loans.

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    “For the avoidance of doubt, the CBN has neither appointed nor accredited any organization to conduct any training on its behalf for the purpose of applying for AGSMEIS loans,” it said.

    The public is therefore advised to beware of the activities of these non- accredited private and public organisations, and report anyone or group that approaches them for these illegal and unauthorized trainings, to the law enforcement agencies.

  • CBN to invest in tomato production

    The Central Bank of Nigeria (CBN) is  lifting the agricultural sector with new  investment in fresh tomatoes production and processing.

    Speaking during a facility tour of Dangote Tomato Processing Factory and Farms, Kadawa, Garun Malam Local Government Area of Kano State,  the CBN Governor, Godwin Emefiele expressed optimism that another revolution, similar to what was recorded in the production of rice is about to occur in that produce.

    He noted that from what was witnessed in Kadawa,  Dangote Tomato Plant is the only real processing plant in Nigeria for now, unlike others that were merely importing tomato puree and concentrates and packaging same in the country.

    He said the apex bank is impressed by the potentials for the production of fresh tomatoes and allied products and has therefore reiterated its commitment to the stakeholders in the value-chain in Kano State alone.

    He further stated that the initial challenges encountered by the project  have been overcome with  the acquisition of the greenhouses for the production of high yield seedlings with the collaboration  of the CBN.

    He hinted that going by the brief he got from Chairman of Dangote Farms, Sani Dangote, when the factory become fully operational, the country would not only be self-sufficient in tomato production in the next one year but will also be able to export to other African countries in the next three years’’.

    Minister of Agriculture, Audu Ogbe assured the farmers that with the firm commitment by CBN, he can only assure the farmers that “better days are here” just as he assured the farmers of protective policies which may include inclusion of tomato in the import prohibition list.

    Deputy Governor of Kano State, Nasir Yusuf Gauna in his remarks during the facility tour, stated that the state has really keyed into large scale agricultural production by partnering with Dangote Farms by way of rendering all necessary assistance for the take-off of the project.

     

     

  • CBN okays 58 IMTOs as two get approval-in-principle

    The Central Bank of Nigeria (CBN) has approved 58 International Money Transfer Operators (IMTOs) for foreign exchange business. and given approval-in-principle to two operators. The two operators  are Direct Wire UK Limited and Naira Gram LLC.

    The IMTOS have been playing major role in attracting more dollars to the economy.

    Earlier, the CBN had released 21 new list of licensed IMTOS in addition to the 14 it previously approved, bringing the number of organisations licensed to 35.

    Some of the newly licensed operators include Aftab Currency Exchange Limited; AWS Malta Limited; Caperemit UK Limited; Centrexcard Limited and Colony Capital Limited among others. The new operators will join Ria; Western Union; MoneyGram; WorldRemit; RANS-Fast Remittance; UAE Exchange Center LLC; Wari limited and Home Send S.C.R.L among others to help Nigerians in the Diaspora remit dollar home and boost dollar liquidity.

    The apex bank also cautioned Nigerians in Diaspora against patronising illegal money transfer operators.

    In a statement, its Acting Director, Corporate Communications, Isaac Okorafor, said the apex bank was aware of the increasing patronage of illegal MTOs for home remittances.

    Okafor said the unscrupulous operators lure unsuspecting customers with ridiculous exchange rate, use naira accounts opened in local banks ostensibly for legal business to pay out the proceeds to the beneficiaries while channeling the foreign currencies to fund the parallel market.

    He said this practice has led to non-reporting of such transactions to relevant authorities thereby undermining effective surveillance of the sector as well as leading to discrepancies in statistics on the transactions between countries of origin of remittance and Nigeria.

  • ABCON Live Run Portal for BDCs, CBN, NIBSS, NFIU integration ready

    The Association of Bureaux De Change Operators of Nigeria (ABCON) will tomorrow launch its Live Run Automation Portal in Lagos. The ABCON Automation Live Run project is expected to automate all Bureaux De Change (BDCs) Operations with those of Nigeria Inter-bank Settlement System (NIBSS), Nigeria Financial Intelligence Unit (NFIU) and the Central Bank of Nigeria (CBN) to improve the level of compliance of the BDCs with set regulations.

    Speaking to financial reporters ahead of the portal launch, which will hold at the PISTISHUB, 1A Ikorodu road, Behind Mobil Filling Station, Maryland, Lagos, ABCON President, Aminu Gwadabe, said the group had secured the CBN’s no- objection approval to launch the Live Run  portal.

    The approval, he said, reaffirmed the regulator’s commitment to a transparent and viable forex market where stakeholders’ interests are protected.

    Gwadabe said the world is going digital, and BDC operators under his leadership are committed to staying ahead of the competition by deploying time-tested technology to deliver effective services to customers.

    He said the objective is to make Live Run portal enhance BDCs compliance with set regulations and promote market integrity.

    According to him, the portal will sustain transparent transactions in the BDC corridor, boost the morale of its members and ensure their continuous operations.

    The ABCON chief said the group had fully upgraded its Information Communication Technology (ICT) platforms, to achieve full digitisation of BDCs operations in line with its goal of sustaining transparent operation and prompt rendition of weekly returns to regulatory agencies.

    He said the group has also launched a website, the www.naijabdcs.com, to serve as a reliable platform for local and international investors, who will rely on it to access uniform forex rate across states, regions and markets nationally.

    According to Gwadabe, ABCON coordination journey of automation and digitisation of BDC’s processes started in 2016 with the launch of automation platform named www.abconng.org.ng.

    “The project came with three layers and stages. First layer is on online real time registration of our members with a success rate of over 4,100 BDCs registered nationwide. This layer is to enable our members conduct their membership registration from any of their location without coming physically to ABCON Secretariat.

    “The second layer bothers on automation of ABCON’s operational process, book keeping, issuance of receipt, preparation of accounts, balance sheets, ledgers and sales/purchase registers. The most important of this layer is the online real time rendition of returns to regulatory agencies.

    “Another important feature of this layer is the BDCs on boarding and integration of the Bank Verification Number (BVN) platform on the NIBSS portal for verifications and validation of clients’ BVNs, which is a most vital requirement forex sale.

    “Of special note is also the integration of our platform to immigration platform for the verifications of international passport. Already, we are in advance engagement with the Irish technology experts for the achievement of this idea. The final layer is the one that excites me a lot and has to do with a trading platform for BDCs in Nigeria. Our technical experts in India, Poland are in advance stage of completion for onward submission to the CBN,” he added.

  • CBN warns bank’s CEOs on false reports

    Bank chiefs who breach Central Bank of Nigeria’s (CBNs) e-payment reporting rules, including submitting/reporting false or inaccurate reports, are to be warned, the apex bank said yesterday.

    Besides, the erring banks will get a penalty of N250, 000. Lenders that fail to ensure that third party end-to-end e-payment solution used by the bank/financial service provider is approved by CBN will also get N2.5 million fine and the managing director issued a warning letter.

    The threat was contained in a draft guideline on end-to-end electronic payment of salaries, pensions, suppliers and taxes released yesterday by the apex bank.

    The draft guideline, signed by CBN Director, Payments System Management Department, Sam Okojere, said the banks were expected to promote the adoption of end-to-end electronic payments by all stakeholders covered by this regulation.

    @The guideline is in exercise of CBN’s powers, as provided in the CBN Act, 2007, Section 47, sub section 2(2d), hereby issues the following Regulation on the end-to-end electronic Payment of Salaries, Pensions & other Remittances, Suppliers and Revenue Collections in Nigeria.

    “They are also to provide payers and beneficiaries with e-payment enabled bank accounts with Deposit Money Banks, Other Financial Institutions or any other approved channel for receiving payments such as mobile money/electronic wallet, subject to the Bank’s approved Know Your Customer (KYC) limits,” the guideline read.

    The banks are also to process electronic payment instructions in accordance with subsisting payments system and clearing system rules and  publish customer service/ contact centres details via multiple media channels and maintain customer service contact centres, to promptly attend to all electronic payment enquiries and challenges within stipulated timelines; and report of customer complaints, indicating resolution status.

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    They are also to make available any or combination of the following data sets, as may be applicable, along with the mandatory returns to the CBN, on a monthly basis or as may be otherwise specified number of salary/pension/tax paying client organisations, salaries/pension/tax payment transactions count, salaries/pension/suppliers/tax payment transactions value per payment method given.

    It said that in the event of duplicated/excess payments, should establish a recovery process engaging both Payers and Beneficiaries in line with existing Regulation on Operation of Electronic Payment Channels in the county.

    The objective of the end-to-end electronic payment of salaries, pensions, suppliers and taxes initiative, the apex bank said, is fully aligned with the core objectives of the National Payment Systems Vision 2020 (PSV2020), which is to ensure the availability of safe, effective and efficient mechanisms for conveniently making and receiving all types of payments from any location and at any time, through multiple electronic channels.

    This will reduce the time and costs of transactions, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby making the Nigerian payments system align with international best practices.

  • CBN to raise N1.8tr via T-Bills in Q1

    Injects $210m into Inter-Bank Forex Market

    The Central Bank of Nigeria (CBN) plans to raise a total of N1.809 trillion from the debt market, in the first quarter  of 2019.

    This is according to data contained in the Nigerian Treasury Bills Issue Programme for the first quarter of 2019, posted on the bank’s website on Tuesday.

    The apex bank said it would raise N823.43 billion from rollover programmes with a maturity period ranging from one to three years.

    According to the document, 91-day bills vlaued at N51.46 billion will be rolled over, together with 182-day bills worth N164.92 billion and 364-days bill worth N607.05 billion.

    The apex bank also said N985.93 billion worth of treasury bills would mature during the same period.

    They are in 91-day, 182-day and 364-day papers worth N59.02 billion, N248.84 billion and N678.06 billion respectively.

    The CBN sells treasury bills twice a month to help the federal government raise money to fund its budget deficit.

    It issues treasury bills regularly as a control measure to help banks mop up excess liquidity and control the money supply. Meanwhile, the APEX BANK yesterday injected another sum of $210 million into the inter-bank foreign exchange market. The exercise was in continuation of its periodic intervention in the foreign exchange market.

    Figures released by the CBN indicated that authorised dealers in the wholesale segment of the market received the sum of $100 million, while the Small and Medium Enterprises (SMEs) and the invisibles segments were allocated the sum of $55 million each.

    The Director, Corporate Communications Department at the CBN, Isaac Okorafor, confirmed the figures and restated the Bank’s resolve to always meet the request of genuine customers in the various segments of the market.

    It will be recalled that on Friday, January 25, 2019, the Bank injected a total sum of $289.76 million into retail Secondary Market Intervention Sales (SMIS) and CNY38.70 million in the spot and short-tenored forwards of the inter-bank foreign exchange market.

    Meanwhile, the naira continued to exchange at an average of N360/$1 in the Bureau De Change (BDC) segment of the market.

     

  • Retail SMIS attracts $289.76m, CNY 38.70m from CBN

    The Central Bank of Nigeria (CBN) has  injected  $289.76 million into the retail Secondary Market Intervention Sales (SMIS) and CNY38.70 million in the spot and short-tenored forwards segment of the inter-bank foreign exchange market.

    CBN’s Corporate Communications Director,  Isaac Okorafor, who confirmed the figures, noted that the dollar-denominated interventions were for transactions in the agricultural and raw materials sectors.

    On the spot and short-tenored sales in Chinese Yuan, he said they were similarly for payment of Renminbi denominated Letters of Credit for agriculture and raw materials based on bids received from authorised dealers.

    While reiterating the bank’s support for the inter-bank foreign exchange market, he disclosed that the apex bank’s management was pleased with the level of stability at both the Bureau-de-Change (BDC) and the Investors’ and Exporters’ (I&E) window of the foreign exchange market.

    According to him, the CBN was also satisfied with the implementation of the Bilateral Currency Swap Agreement (BCSA) with the Peoples Bank of China (PBoC), coupled with a recent inflow of about $2.8 billion Euro bond.

    Okorafor expressed confidence that the foreign exchange market in Nigeria will continue to enjoy stability in the coming months and beyond, given the marginal increase in the country’s external reserves.

    It will be recalled that the CBN last Tuesday, intervened in the wholesale, Small and Medium Enterprises (SMEs) and invisibles windows of the inter-bank foreign exchange market to the tune of $210 million.

    Meanwhile, $1 exchanged for N361 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY1 exchanged for N53.

    Nigerian banks are already counting their gains from the $2.5 billion currency swap deal.

    Analysts said the economies of both countries need each other, and so do their businesses and banks. The banks in both countries are not only earning fees from the ensuing transactions, but are beginning new lending to businesses.

    The analysts said these gains and the need to keep the naira stable prompted the CBN to sign the bilateral currency swap agreement with the People’s Bank of China (PBoC).

    In local currencies, the swap is worth 15 billion Renminbi (RMB) or N720 billion. The three-year renewable  deal  allows  for  the  direct exchange of RMB and naira for the purpose of trade and direct investment between both countries.

    According to the PBoC, the aim of the swap arrangement is to facilitate  bilateral  trade,  direct  investment,  and  safeguard financial market stability.

    The trade is reducing the demand for United States (US) dollar by Nigerians importing from China and consequently  strengthen  the  value  of  the  Naira.  The deal is also reducing  certain  barriers  for  Nigerian  importers  of  goods  from China   and   reduce   the   cost   of   transactions   in   multiple currencies.

  • ABCON to CBN: make BDCs direct agents of IMTOs

    The Association of Bureaux De Change Operators of Nigeria (ABCON) has urged the Central Bank of Nigeria (CBN) to implement provisions of its 2014 circular by making BDCs direct agents of international money transfer operators (IMTOs) as obtained in other countries.

    It also sought the restoration of its status as a self-regulatory organisation (SRO) to ensure effective coordination of the over 4,5000 BDCs across the country.

    Its Economic Review for the fourth quarter (Q4) of last year released at the weekend said: “In as much as the regulatory bodies in Nigeria have realised the indispensable role that the BDC sub-sector occupies in the stabilisation of the currency in Nigeria, the sector should be further strengthened and developed to achieve greater systemic efficiency.

    “To this end, the professional training institute for dealers and operators being promoted by ABCON should be given appropriate support by the regulators and members to key into the project.

    “The CBN should implement its 2014 circular for making   BDCs direct agents of international money transfer operators as obtained in other climes.

    “The CBN should revisit the suspension of ABCON as a self-regulatory organisation for result-oriented coordination of the over 4500 CBN licensed BDCs.

    “CBN should support ABCON to increase public awareness and public visit to naijabdcs.com, the Association’s live exchange rate platform, which contributed immensely to the price discovery, transparency in the foreign exchange market and has become reference point for source of  credible  exchange rate information.”

    ABCON also urged BDCs to embrace the cloud base automation of their operations it initiated for internal reorganisation, efficiency, global competitiveness and volumes driven transactions.

    It also urged BDCs to explore more sophisticated and dynamic marketing techniques this year to track billions of foreign currencies floating within the economy and flowing into the “Black Market” thereby incubating capital flight and money laundering.

  • CBN plans new capital control rules

    The Central Bank of Nigeria (CBN) will be introducing new capital controls in the second quarter of the year to protect the foreign reserves and the naira, The Nation has learnt.

    Capital control allows the apex bank to put up measures that check inflow and exit of funds from foreign portfolio investors in the economy.

    Nigeria suffered severe dollar shortages after the price of crude oil, its top export and main source of forex, plunged in late 2014, prompting it to introduce capital controls in 2015.

    The country has multiple exchange rates against the dollar and has been selling the greenback on the interbank market to boost liquidity after floating the naira for investors.

    But the policy, if implemented, will increase pressure on lenders already weighed down by bad loans.

    The requirements will be stricter in terms of what funding qualifies as capital and will also require lenders to create “capital conservation” and “counter-cyclical” buffers, the CBN told Bloomberg.

    The rule seeks to protect the nation’s banks “against shocks emanating locally and from abroad” by increasing the level of regulatory capital and the quality of the assets, it said.

    Recently, the apex bank renewed its commitment to simplify foreign exchange regulations through reforms and innovation in a bid to further encourage investors.

    It pointed out that the delegation of the issuance of Certificates of Capital Importation (CCIs) to commercial and merchant banks some years ago was done to instill confidence in the investor community and encourage the flow of foreign direct and portfolio investments into the Nigerian economy.

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    The bank noted: “We assure all investors that the integrity of the CCI regime remains sacrosanct and there shall be no retroactive application of foreign exchange rules and regulations. The CBN welcomes all legitimate investors to take advantage of the enormous investment opportunities in Nigeria.”

    The CBN said it will continue to welcome foreign investments and investors.

    “Indeed, some of our recent innovations and reforms of the foreign exchange regime, such as the introduction of the Nigerian Autonomous Foreign Exchange (NAFEX) window, are designed to simplify foreign exchange regulations,” the bank said.

    With over $60 billion turnover in the Investors’ and Exporters’ (I&E) Forex Window launched by the CBN in April, 2017, has surpassed stakeholders’ expectation. The window is not only a boost to forex liquidity, but has stabilised the local currency at the official and parallel markets.

     

     

  • Atiku’s monetary agenda will lead to perdition, says Emefiele

    Governor of the Central Bank of Nigeria (CBN) Mr. Godwin Emefiele has warned the Peoples Democratic Party’s (PDP) presidential flag bearer’s suggestion the exchange rate should be free float is recipe for disaster that will surely lead to perdition.

    Reacting to Atiku Abubakar’s criticism of the CBN and Emefiele’ management of monetary policies and his suggestion that the exchange rate should be free-floating, the CBN governor said: “The MPC reviewed it and concluded that it would be wrong. It is as good as saying that we should go back to the era of Structural Adjustment Programme (SAP) in Nigeria.

    “The implication can better be imagined. It will certainly lead to capital flight, lead to massive depreciation or devaluation of the currency and ultimately to currency crisis in Nigeria and I think we should all know that it is a road to perdition to ever go in that direction.”

    Addressing reporters at the end of the bi-monthly Monetary Policy Committee (MPC) meeting, the first for the year, and weeks before the general elections, Emefiele maintained: “There is no capital control in Nigeria today because you cannot find the CBN trying to intervene in the market for demand and supply of foreign exchange.”

    He insisted: “We cannot be talking about allowing import of items that can be produced in the country today, exporting jobs from Nigeria to foreign countries, and we say we have the interest of Nigeria at heart?

    “We don’t agree with anybody. It is a wrong premise to say that you will allow imports to just flood the country just because you want to please anybody. It is not in our interest.”

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    Emefiele pointed out the CBN is apolitical. “We will remain apolitical. We will not want anybody to drag the central bank into issues within our remit otherwise, we would respond to it.”

    The CBN governor admitted the apex bank has instructed banks to suspend interest on loans for fuel imports.

    With regards to forex restrictions on imported items, Emefiele said CBN will get even more aggressive to see to it that any or all food items that can be produced in Nigeria and consumed in Nigeria and are currently being imported into Nigeria may face forex restrictions.

    Highlighting his successes and achievements as CBN governor, Emefiele argued that “Dangote is today establishing the biggest refinery I have ever seen.

    “The size of Dangote refinery is at least 10 times the size of Victoria Island. By April 2019 when Dangote Fertilizer Plant begins to roll, we will place a ban on the importation of fertilizer because Nigeria will both be self-sufficient and even export.”

    He also disclosed that he has “written to governors in the South-South and South East that time has come to stop importation of crude palm oil.

    “A barrel of crude palm oil is more expensive than crude petroleum per barrel. I told them that we will re-establish the oil palm belt in the South-South and South Eastern parts of the country.

    “Edo State has reacted positively like some other states. With support and intervention from CBN and government, we would reverse the trend.

    “That should be the direction. It is important to say this so that people can know that the economy is doing well.

    “A lot of work still needs to be done, there are still a couple of vulnerabilities and fragilities that we see in the economy but we are determined to resolve them.“