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  • Nigerian migrants top list of Africans sending money home, says CBN

    NigeriaN migrants now top the list of Africans making the most remittances back home, Central Bank of Nigeria (CBN) Governor Mr. Godwin Emefiele said yesterday

    He spoke in Abuja at the opening session of the workshop on remittances household survey.

    Quoting the World Bank, Emefiele, who was represented by Director, CBN Statistics Department Dr. Mohammed Musa Tumala, said: “Global remittances have risen gradually over the years to about US$613 billion in 2017, of which US$72 billion was received by African countries. As a recipient country, Nigeria tops African countries and is also ranked among the top five globally.”

    However, there are some challenges in getting the accurate data on the remittances back home by migrants.

    The CBN requested for Technical Assistance from the African Institute for Remittances and the World Bank to get accurate data on remittances to Nigeria.

    Emefiele lamented that compilers of remittances statistics in the country use both banking records as well as staff estimates of informal inflows.

    “This methodology is not without limitations as we think that a large chunk of migrants’ remittances pass through informal channels and are thus unrecorded,” he said.

    Nigeria, he said, “is yet to conduct a household based Remittances Survey to provide scientific estimates of these informal inflows”.

    In addition, data from banking records also come with some discrepancies due to classification challenges on the part of the reporting institutions.”

    It is in view of these challenges that the CBN requested for Technical Assistance (TA) from the African Institute for Remittances (AIR) and the World Bank.

    “It is hoped that in collaboration with other agencies in the country, the TA missions would achieve the objectives of the conduct of Remittances Household Survey and the establishment of a remittances legal and regulatory framework for the country.”

    Emefiele noted that these “will ultimately support improvements in Nigeria’s remittances transactions as well as enhance the quality of data on remittances as currently reported in the country’s Balance of Payments.”

     

  • CBN injects $337.16m, 56.17m CNY into retail secondary market intervention sales

    The Central Bank of Nigeria (CBN) on Friday said it injected 337.16 million dollars in the retail Secondary Market Intervention Sales (SMIS) in its first intervention in the inter-bank foreign market for November.

    A statement issued in Abuja by Isaac Okorafor, the bank’s Director of Corporate Communications, noted that the amount was in addition to 56.17million Chinese Yuan (CNY) in the spot and short tenored forwards segment of the market.

    Okorafor stated that the intervention was for requests in the agriculture and raw materials sectors.

    He added that “the Chinese Yuan, on the other hand, was for Renminbi denominated Letters of Credit.”

    The director stated that the market had continued to enjoy stability owing to the regular interventions by the bank, adding that it had also guaranteed stable exchange rate for the Naira.

    He assured that the CBN remained committed to ensuring that all the sectors of the forex market continued to enjoy access to the needed foreign exchange.

    The CBN had on Tuesday intervened in the wholesale segment of the inter-bank Foreign Exchange Market to the tune of 210 million dollars.

    Meanwhile, one dollar is exchanged for N362 at the Bureau de Change (BDC) segment of the foreign exchange market, while the Chinese Yuan exchanged for N54.

  • CBN issues guidelines for Payment Service Banks

    The Central Bank of Nigeria (CBN) yesterday unveiled operational guidelines for Payment Service Banks (PSBs). The move is in furtherance of the CBN’s mandate of promoting a sound financial system and  enhancing access to financial services for low income earners and unbanked segments of the society.

    The PSBs are to operate mostly in the rural areas and unbanked locations, targeting financially excluded persons, with not less than 25 per cent  financial service touch points in such rural areas as defined by the CBN from time to time, the guidelines said.

    According to the CBN,  the key objective of setting up PSBs is to enhance financial inclusion by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other financially excluded entities through high-volume low-value transactions in a secured technology-driven environment.

    The new banks are to also enter into direct partnership with card scheme operators but such cards shall not be eligible for foreign currency transactions.

    They are to deploy ATMs in some of these areas; deploy Point of Sale devices and be at liberty to operate through banking agents (in line with the CBN’s Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria).

    The National Financial Inclusion Strategy (NFIS), which supports PSBs, seeks to ensure that over 80 per cent of the bankable adults in Nigeria have access to financial services by 2020.

    The CBN, in collaboration with stakeholders, launched the NFIS on October 23, 2012 with a view to reducing the exclusion rate to 20 per cent by 2020.

    Despite several initiatives, including the Introduction of Microfinance banking, Agent Banking, Tiered Know-Your-Customer Requirements and Mobile Money Operation (MMO) in pursuit of this objective, the inclusion rate remains below expectation.

    The CBN, in the circumstance and in collaboration with critical stakeholders in the digital financial ecosystem, such as the Nigerian Communication Commission, commercial banks, mobile money operators and telecommunication companies have conducted several study tours of other jurisdictions that have made significant progress in driving financial inclusion.

    In view of the challenges to effective outreach to rural communities as well as the need to complement the services provided by other licensed entities, the CBN issues this regulation to provide for the licensing and operations of Payment Service Banks (PSBs) in Nigeria. It said PSBs are expected to leverage on mobile and digital channels to enhance financial inclusion and stimulate economic activities at the grassroots through the provision of financial services.

    Accordingly, PSBs are envisioned to facilitate high-volume low-value transactions in remittance services, micro-savings and withdrawal services in a secured technology-driven environment to further deepen financial inclusion and help in attaining the policy objective of 20 per cent exclusion rate by 2020.

    The guideline is issued pursuant to powers conferred on the CBN Governor by the CBN Act 2007 and BOFIA 1991 (as amended). It covers the definition; objectives; eligible promoters; licensing requirements; corporate governance; business conduct; and permissible activities. The requirements for prudential regulation; supervision; Know Your Customer (KYC), consumer protection as well as Risk Management of the proposed Payment Service Banks in Nigeria are also covered.

     

  • CBN, Interswitch, others for E-PPAN confab

    Representatives of the Central Bank of Nigeria (CBN), Interswitch, PwC and over 250 delegates are set to deliver papers at this year’s E-Payment Providers Association of Nigeria (E-PPAN) 9th Annual Payment Systems Conference scheduled for November 6 at the Civic Centre, Victoria Island, Lagos.

    The annual conference will provide a rallying ground for the industry to focus on how to mitigate fraud-the industry’s most pressing challenge.

    Confirmed to speak at the event include Adedotun Sulaiman, Chairman, Board of Trustees, E-PPAN; Dayo Apata Esq, Solicitor General of the Federation/Permanent Secretary, Federal Ministry of Justice; Agada Apochi, Managing Director/CEO, Unified Payment Services Ltd; Tunde Ogungbade, Managing Director/CEO, Niyi Ajao, Executive Director, NIBSS Plc; and Temitope Akin-Fadeyi, Head, Financial Inclusion Secretariat, CBN.

     

    ; Olayinka David West (Ph.D),Research & Academic Director; Lagos Business School;  Global Accelerex Ltd; Dr. Segun Aina OFR, President, Fintech Association of Nigeria & Past President/Chairman of Council, CIBN; Ernest Uduje, Managing Director/CEO, ITEX Integrated Services Ltd, Ade Atobatele, Founder; Gboza Gbosa Technology Ltd; Mr. Inalegwu Alogwu, Head, Products Strategy & Innovation; Interswitch Ltd.  Wunmi Adetokunbo-Ajayi, Partner, PwC; Pattison Boleigha, Chief Conduct and Compliance Officer, Access Bank Plc.

    Other industry leaders include are Ibrahim Lamorde, Commissioner of Police – Special Fraud Unit, Nigeria Police Force; Ibrahim Magu, Chairman, Economic and Financial Crimes Commission; Stanley Jacob, Chairman, CeBIH; Dr David Isiavwe, Chairman, ISSAN; Yinka Tiamiyu, Chairman, ACAEBIN; Rotimi Adurotelegan, Chairman, ACCOBIN; George-Maria Tyendezwa, Head Cybercrime, Federal Ministry of Justice and Onajite Regha, Executive Secretary/CEO, E-PPAN

    The 2018 conference is sponsored by the Central Bank of Nigeria, Visa International, Committee of EBanking Industry Heads (CeBIH), Nigeria Inter-Bank Settlement System Plc (NIBSS),Unified Payments Ltd, ITEX Integrated Services Ltd, Pagatech Ltd, Global Accelerex Ltd, and NowNow Payment System Ltd; while the media partners are Plus Journal International and E-Payment Review.

    Globally, cybercriminals rake in at least $1.5 trillion every year, which means more than $1m (N305,750,000) is lost every minute to cybercrime, this is according to a research by Michael McGuire, senior lecturer in criminology at Surrey University. It therefore comes as no surprise that industry stakeholders are concerned on how to ensure an effective, swift, and well-orchestrated response to cyber-attacks.

  • $8.1bn transfer: Industry watchers want MTN, CBN to resolve amicably

    It is two days to the October 30, date for court to hear the case between Telecommunication giant, MTN and the Central Bank of Nigeria (CBN) in a dispute over the alleged transfer of $8.1bn of funds by the telecom firm.

    And the position of industry watchers has remained that amicable resolution should be reached in the bid to salvage the industry which has been described as the cash cow to the nation’s emerging economy and the key sector in Government Economic Recovery Plan (GERP).

    Recall that, Minister of Finance, Zainab Ahmed, has admitted in an interview that the series of sanctions leveled against ICT company, is maligning the country’s reputation in the international community stating that an holistic view critical to sustain the nation’s nursing economy rather than a damping position should be embraced by stakeholders.

    “The MTN incident was a very damaging one for us, that was one of the reasons why we have been out trying to engage investors”, she said at the 24th Nigerian Economic Summit Abuja on Tuesday, 23rd October 2018.

    The telecom company and four banks (Standard Chartered Bank, Citi Bank, Stanbic IBTC Bank and Diamond Bank) have been embroiled in a protracted back and forth, with the Central Bank of Nigeria and the office of the Attorney-General demanding over $10billion for alleged illegal repatriation of dividends as well as tax defaults.

    The minister gave reasons for the sanctions, explaining that “there is a tendency for big business to take regulations and governments for granted.” She continued further in her explanation stating that “After that incident happened, all the information the CBN has been trying to get in two months actually came. Now, they have almost solved the problem.”

    “We are trying to make sure this doesn’t happen again, we are continuously discussing with monetary authorities. There will be no company next after MTN, nobody is next because we can’t afford for this kind of incidence to keep happening,” she added.

    “Nigeria is considered a high-risk country especially after the MTN debacle, investors are not very keen on exposing their investments to state volatility”, @FakhuusHashim, an influential social media user who shared his view on the public matter stated while urging that the pro and cons of the matter be considered thoroughly.

    MTN Nigeria’s Public Relations Manager, Funso Aina, in a statement issued in August confirmed the company’s position, clearly stated that MTN has been cooperating with the government and all necessary information required had been provided by the telecommunications company and these have been exhaustively reviewed and cleared in 2016/2017.

    In a following statement issued by the company in September, the company further stressed these points and its historic engagements with the Nigerian authorities.

    “It is both regrettable and disconcerting that despite the historic engagements with the Nigerian authorities by MTN Nigeria, the Senate investigation into the CCI matter, and the multiple tax assessments done by the Nigerian tax authorities over many years that were satisfactorily concluded, that these matters are being reopened.”

    During a 2016 Senate investigation into alleged violations of the Foreign Exchange (Monitoring and Miscellaneous) Act by MTN, the bank regulator, had said that the company was not in breach of any provision of the law with respect to the Certificates of Capital Importation, in effect, concurring with the company.

    But two years after CBN said MTN contributed to depleting the country’s reserves through the purchase of dollars via unapproved certificates. MTN has denied any wrongdoing.

    Nigeria faced a severe shortage of dollars in 2016 caused by low oil prices, leading to a sharp devaluation of the naira. The currency crisis triggered a recession, which the country emerged from last year.

    MTN said it paid the naira equivalent to purchase a total of $8.1bn from the central bank in several tranches over a nine-year period and that it did not negatively impair the reserves.

    The pending civil cases will be heard on the 30th of October and 8th of November.

  • CBN revokes nine micro-finance banks’ licences

    The National Association of Micro Finance Banks on Monday said that nine out of the 34 micro finance banks in Niger have lost their operational banking licences.

    Mr Sado Daniel, North Central Secretary of the association made the remark in Bida while inaugurating a micro-finance bank established by the Federal Polytechnic, Bida.

    “These micro-finance banks lost their licences because they fell short during the regulation exercise carried out by the Central Bank of Nigeria (CBN),’’ he said.

    He said that non adherence to corporate governance contributed to the collapse of the banks, urging the management and staff members of the new bank to adhere strictly to the rules establishing it.

    “Banks do not die, people kill them; please do not kill the Federal Polytechnic Bida Micro-Finance Bank; ensure you adhere strictly to the rules of the game,’’ he said.

    Similarly, Hajia Hajara Mohammed, a representative of the CBN in Minna, said that insider abuse was another huge factor that contributed to the failure of micro-finance banks across the country.

    Mohammed urged business people to stop diverting loans collected from banks to other purposes such as marriage among other things different from what the loan was meant for.

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    According to her, “until we stop using business money and loans to get married and buy clothes, businesses in the country will not progress.’’
    She called on the people to work toward ensuring that all loans collected were paid back to enable them to benefit more.

    “If you don’t return your loans there is no way you will benefit from loans being made available by the Federal Government through the CBN,’’ she said.

    Earlier, Dr Abubakar Dzukogi, the Rector of the polytechnic, said that the micro-finance bank was established with a capital base of N20 million adding that it would be increased to N50 million by the year 2019.

    Dzukogi, who is also Chairman, Board of Directors of the micro-finance bank, said the bank would make banking easy for students and staff members of the polytechnic.

    He also said that the measure would ease the cashless policy being planned by the CBN.

  • CBN injects $337m, CNY53m into Inter-Bank Forex market

    In another round of intervention, the Central Bank of Nigeria (CBN), at the weekend, injected over $337 million in the inter- Bank forex market.

    The CBN intervened in the Retail Secondary Market Sales (SMIS) to the tune of $337,333,646.85, in addition to the sum of CNY53,444,222.38 million in the spot and short tenored forwards of the inter-bank foreign exchange market.

    While confirming the figures, the bank’s Director in charge of Corporate Communications Department, Isaac Okorafor, reiterated that the move was in furtherance of the Bank’s commitment to ensuring adequate liquidity and stability in the inter-bank foreign exchange market.

    It will be recalled that the Bank had on Tuesday, October 16, injected $210 million into  the inter-bank foreign exchange market.

    Meanwhile, the naira maintained its steady rise against major currencies around the globe, exchanging for N362/$1 in the Bureaux de change segment of the market last Friday.

  • ‘Why CBN needs to monitor commercial banks’

    Princess Layo Bakare Okeowo is the Chief Executive Officer, FAE Limited, a company involved in the production of fast moving consumer goods amongst other things. In this interview with BIODUN-THOMAS DAVIDS, she speaks on the problems besetting the manufacturing sub-sector and other related issues. Excerpts:

    As an industrialist, how will you react to the state of industry in Nigeria?

    My advice or my dream is for us to industrialise Nigeria. Many people are migrating to China and other best economy countries today, simply  because they are highly industrialised.

    When Nigeria is adequately industrialised, we will have more mechanical engineers, more electrical engineers and other technical professionals, more businesses will develop, there will low unemployment rates, and as a result, our economy will improve greatly. Technology is advancing seriously, as an employer of labour, I want us to do all within our capacity to encourage our youths in looking inward and be more technical.

    We appreciate economy intervention fund of the government to the manufacturers, we still want the intervention to go down to about 5% rate. We also want the government to strictly monitor the intervention fund in order to ensure that commercial banks are putting their words into action. As far as I am concerned it’s only a few people that are benefitting from the intervention, it has not well circulated, so we want the federal government and CBN to monitor commercial banks in this regard and ensure that government’s efforts are not frustrated.

    From experience, what are the major challenges staring manufacturers in the face?

    Stable electricity is the major infrastructural issue that our government needs to look into more seriously for this country to move forward. Then the Apapa Port issue, I don’t really know what to say now, because the situation there is really affecting the economy…

    Are you referring to traffic gridlock or port congestion?

    I am referring to both the traffic and port congestion. We don’t get our shipments on time and besides it is expensive to move consignments to final destinations, it takes up to a month many times, before you can get your consignments. You can believe it, a 40 foot trailer hired now costs about N750,000. Which is about $2000, we do not pay $2000 as freight from Europe…

    What’s the challenge or problem that we cannot resolve in order to make life bearable?

    The present situation is making us produce at a very high cost and there is no way it will not affect pricing and general economy. It is a serious issue that the government needs to act fast on…

    What about the issue of import duty, is it taking any tow on your business?

    To be honest I don’t have any issue with the import duty-government also will have to generate income to run the economy, but what we are asking the government for is conducive environment for manufacturers, especially infrastructural issues like electricity and good roads.

    You claimed that your company is the largest envelopes producer in Nigeria, if I may ask, what is your  staff strength like?

    I wouldn’t want to go into giving figure, but I can say we are an employer of labour and we are doing our best in boosting employment rate in Nigeria. Besides, we have our own way of contributing to corporate social responsibility. For instance, road on our street we did it ourselves without government aids. Sometimes we give to the less privileged in the society….

    In the course of talking, you said you  are the largest producers of envelopes in Nigeria, how did you come to this conclusion?

    Because we simply have proven records, for example we produce about 500,000 different types of envelopes per day….

    People are really harnessing ease that comes with digital technology, they deal more with electronic materials, has advancement in information and technology affected your production in any form?

    Well, every business will have its own share of advancement in technology, despite that enveloping is still relevant. We are trusting God, we are not doing badly and we hope to do much more. It’s not really having impact on our business.

    The main thing that is affecting business in Nigeria is the infrastructural issue. With technology, we can do more than what we are doing now, if we are more technically advanced. We need more technical experts to move the economy forward and get Nigeria well industrialised.

    Back to the issue of credit facilities,  lending rates are still at double digits- 14% for inter lending  and 16% to 20% for multilateral  lending, what is your reaction to such monetary policy?

    Definitely such policy will affect economy in the country, there is nothing like single digit rate which will allow loans to perform very well and beneficiaries will have the ease of pay back. The best thing  remains coming up with economic policies that get Nigeria highly industrialised or that encourage industrialisation. With that Nigeria too, can be like China, may be in the next 10 years.

    Actualising new N66,500 minimum wage, from the present N18,000 is the in thing now, how prepared are the manufacturing industries for this?

    I don’t want to go into that, because that’s sort of a labour issue, but the Bible says we shouldn’t deprive labourers of their rewards, so whatever is the position of the government and the labour bodies, whatever conclusion they arrive at will be looked into and addressed properly. To the best of my knowledge, infrastructural problem is one of the factors compounding these wage issues, if things were even or easy economically there wouldn’t be any noise or misunderstanding on wages.

    The CBN governor, Godwin Emefiele, during a monetary policy meeting, earlier this year, mentioned, inflation rate and pre-election spending as major factors causing hikes in lending rates, if I may ask does pre-election spending really affect your operations?

    You are very correct, it is for sure; electioneering period is always a very tough time for the whole economy, especially for manufacturers, much financial attentions are given to campaign exercises, so it’s better to let them do what they want to do on time so that the economy can move forward…

    In the meantime, how prepared is a manufacturer like you for the pre-election spending?

    Well, we are trying, and we and we will still try our best in making sure it doesn’t affect us so much, what I will advise is that we should vote wisely. I am not a politician and I don’t intend to be a politician, I remain an industrialist, but voters should vote wisely, because voting patterns also to a large extent determine economy of a nation. We pray God will intervene in the affairs of Nigeria, so that the nation can move forward.

    What is your advice to the youths?

    Well, I will advise them to keep calm, in the stage that Nigeria is passing through now, they should however try and lay hands on vocational and technical works for self-independence, so that, even if they couldn’t get white collar jobs, they can get themselves employed and become CEOs on their own.

     

  • Naira stable at N360 to dollar at parallel market

    The naira remained stable against the dollar at the parallel market in Lagos on Friday, still exchanging at N360 to the dollar.

    The naira was, however, traded against Pound Sterling and the Euro at N478 and N417, respectively.

    At the Bureau De Change (BDC), the naira was sold at N360 to the dollar, while its rates against the Pound Sterling and the Euro were N478 and N417, respectively.

    At the investors’ window, the naira closed at N364.12 against the dollar where a market turnover of 295.08 million dollars was achieved.

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    The naira closed at N306.45 to the dollar at the official CBN window.

    Traders said that the market had remained active as political activities had begun gradually across the country.

  • MTN shares up 2% on possibility of reduced repatriation

    South Africa’s MTN Group shares rose as much as 2.55 per cent after the Nigerian central bank said it might reduce the $8.1 billion it had ordered the telecoms firm to repatriate to Nigeria.

    At the Johannesburg Stock Exchange on Monday, MTN shares were up 2.03 per cent to 85.50 rand as early as 0837 GMT, due to the possibility of reducing the repatriation demand by MTN.

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    MTN and the central bank are in a dispute over the transfer of $8.1 billion of funds which the bank said the company had sent abroad in breach of foreign-exchange regulations.

    Godwin Emefiele said on Sunday the CBN may reduce the amount it had ordered MTN Nigeria to repatriate.

    Emefiele said, while addressing reporters in London that new documents provided by the telecom company would help to reduce the size of the claim.

    “I don’t think it will be staying at $8.1bn.

    “I want to believe that the figure will reduce. Whether it will be dropped completely, I honestly cannot say at this time,” he added.

    Emefiele said the central bank had received documents about two weeks ago from MTN and four lenders involved in the case.

    The lenders are Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank, adding that the apex bank was in communication with all parties involved.

    “The central bank will be examining these; then it will be escalated up to my level,” he said, adding that he expected to get the results in a couple of weeks,” he said.