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  • Report banks supplying naira notes to sellers at parties-CBN

    Report banks supplying naira notes to sellers at parties-CBN

    The Central Bank of Nigeria(CBN) has challenged Nigerians to join the fight against hawking or selling of new naira notes at parties and other social gatherings by reporting any deposit bank and its officials involved in the despicable new bank notes trade.

    The CBN admitted is an insider involvement in bank notes trade in the country, saying the hawkers or sellers won’t be in the illegal bank notes trade if there were no insider – suppliers from the deposit commercial banks.

    The CBN head of Currency Operations and Branch Management, Paul Onuoha, who stated this on Thursday, at the CBN Fair, in Abeokuta, the Ogun State capital. advised the public to be vigilant and report any commercial bank and its officials supplying new naira notes to sellers/hawkers to the CBN or security agencies.

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    He said any bank caught aiding and abetting bank notes trade will be slammed with N150m fine without clemency, warning that if such illegality was traced to multiple branches of the same bank, the affected bank would pay N150m to extent of number of its branches involved.

    Also speaking, Mrs. Hakama Sidi Ali, the Ag. Director, CBN Corporate Communications Department, said
    the nation’s currency is an important national symbol which must be handled with the utmost care by Nigerians, insisting CBN would not allow anyone to spray, hawk, mutilate or counterfeit the Naira.

    Ali said CBN) has renewed its commitment towards ensuring availability of clean currency and Naira, urging Nigerians to see the Naira as a critical symbol of national unity that should be respected and kept it clean always.

    “The CBN will continue to ensure availability of clean currency. We, however, urge you to see the Naira as our critical symbol of national identity. Respect and keep it clean. Do not spray, hawk, mutilate or counterfeit the Naira,” she stressed.

  • CBN releases bank customers’ bill of rights, obligations

    CBN releases bank customers’ bill of rights, obligations

    The Central Bank of Nigeria (CBN) yesterday released Bank Customers’ Bill of Rights and obligations to the public.

    The report, released at the “CBN Fair” held in Lagos, with theme: “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development”, insisted that a bank customer has a right to be informed, right to choose, right to safety, right to privacy and confidentiality, and the right to redress.

     Others include right to good service, right to equality and right to free monthly statement of account.

    On the other hand, the report listed certain obligations that a customer owes to his or her bank. They include duty to financial obligations, duty to protect instruments and information, duty to provide factual information and not to mislead the bank, duty to report suspected fraud or error and duty of personal safety and safety of assets. 

    The document, described the customer as the most important person in the economy and every business succeeds only when the customer is happy.

    Describing the customer as a king, it said: “As a king, the customer has many rights. But a king also has duties which he owes himself and the society. In Nigeria, customers of banks have certain rights and duties guaranteed by law, regulation and conventions”.

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    The report disclosed that a bank customer, has a right to disclosure of information from his/her bank on products and services the bank offers.

     “The information provided must be complete, relevant and truthful. Your bank must explain to your understanding all contractual terms and charges prior to the consummation of any agreement or contract. This right enables you to have relevant information in order to make rational choices. It amounts to a breach of right if your bank fails to provide this information or deliberately misleads you in anyway,” it said.

    According to the apex bank, bank customers also have a right to select from the range of products and services made available by your bank at competitive prices.

     “This means that as a customer, you can, at all times, decide on the product or service to accept/purchase and the ones to decline. It is wrong for a bank to restrict your choices or compel you to accept/purchase products or services that are ill-suited for your needs. Where you are not satisfied with your bank’s service delivery on any product or service, you have the right to end the contract or even the banking relationship provided you settle all outstanding commitments,” it said.

    The CBN explained that the right to safety requires a bank to guarantee all its customers a secure and conducive banking environment devoid of threats to their safety and health.

     “You have the right to be reasonably protected from accidents while on the premises of your bank. You also have the right to be protected from negative effects of pollution of any kind whether arising from your bank’s operations or from other sources. It is necessary to stress that your bank is obligated to adhere strictly to applicable safety and directives to ensure that your safety and well being are adequately guaranteed while you are on the premises of your bank,” it said.

    Continuing, the apex bank also highlighted the customers right to privacy and confidentiality.

    It explained that as a bank customer, one has the right to freedom from disclosure of your account details by your bank as intrusion into your account by third party.

    In other words, a bank is not to divulge your account information to a third party; a bank must also protect customers’ information from unauthorized access by a third party.

    It however, stated that there are, expectations to this right where a bank is required by law to make disclosure; and where a customer consents to the disclosure.

     “A bank must provide its customers a redress mechanism to express their displeasure or grievance. The mechanism must be free, accessible, transparent, timely and convenient. You have a right to efficient complaints management system through which you can lodge complaints against your bank. You also have the right to be kept abreast of resolution process (acknowledgment, feedback, updates, and explanation) and ultimately, basis of decision. Where you are not satisfied with the decision of your bank, you have the right of review either by your bank, the Central Bank of Nigeria (CBN) or the court,” it stated.

    The CBN however, stated that all customers have a right to value for their money which involves the right to be treated with respect and dignity by banks and their representatives.

     “The hallmark of banking is customer satisfaction and as such your bank would have failed if it was unable to offer quality and value-adding banking services to you as a customer. Part of this right is that your bank must provide appropriate response to your needs and complaints,” it said.

    Bank customers also have the right to equality. Here, the  right requires that a customer is treated equally as other customers regardless of differences in financial standing/deposit balance, physical ability, age, gender , ethnicity, or creed. It is wrong for a bank to offer preferential treatment to some customers at the expense of other similar kind of customers. However, banks may decide to differentiate customers on account of the nature of products customers purchase or subscribe to.

    However, some customers may benefit from certain privileges which are features of specific products or services.

    There is also the right to free monthly statement of account. “The provision of the Revised Guide to Bank Charges is that banks are required to provide their customers free statement of account on monthly basis. This means that you have the right to get your monthly statement of account from your bank at no cost. It should be noted, however, that the Guide provides that any special request attracts a fee,” it said.

    The report also highlighted customers’ obligations to their banks.

     “This represents the cornerstone of your duties as a bank customer and involves the search for relevant knowledge that should lead you to make informed decisions and enhance your benefits. Without adequate knowledge, customers are bound to make ill-informed decisions which may precipitate an avalanche of complaints from customers against their banks. It is generally agreed that sophistication in the banking industry has tasked the understanding of even people that are financially literate; it is, therefore, your responsibility to “shine your eyes” when dealing with your bank,” it said.

  • CBN set to revive eNaira

    CBN set to revive eNaira

    The Central Bank of Nigeria (CBN) is working on reviving the eNaira project as it reaffirms its commitment to building trust and expanding digital financial services access in the country.

    Nigeria’s Central Bank Digital Currency, eNaira, was launched in October 2021 as one of the country’s initiatives to drive financial inclusion, but its acceptance level remained very low. The apex bank attributed the low acceptance and use to poor awareness on its operations, reaffirming commitment to reviving the payment infrastructure.

    Speaking yesterday during the CBN Fair held in Lagos, with the theme: “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development” its Branch Controller, Lagos, Sunday Daibo, said the apex bank is taking steps to ensure more people are brought into the digital payment network.

    He said: “In a world where technology is reshaping economies and redefining how people interact with financial services, alternate financial services have emerged not as an option, but as a necessity.  They are the bridges connecting the underserved populations to the formal financial system,” he said.

    “ Today’s gathering brings together policy makers, financial institutions, FinTech innovators, merchants and the public, all stakeholders in a single mission to make financial access to the person and to ensure that every Nigerian, regardless of location or status, can participate in and benefit from our nation’s economic project progress.

     “Over the years, we have seen our mobile money platforms, agency banking networks, USSD services, internet banking contracts, contactless payments, central bank digital currency and, most recently, open banking, have broken the barriers of distance costs and complexity.”

    These channels are more than just tools for transaction. They are instruments for empowerment,” he said.

     He described the programme as a celebration of Nigeria’s collective commitment to economic stability, financial inclusion and national development.

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    Also speaking, CBN Acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, said the management of the apex bank, under the leadership of Olayemi Cardoso, is committed to stimulating productivity and financial inclusiveness as well as delivering on its core mandate of monetary and price stability.

    This has resulted in significant increase of inflow in foreign investments, positive trade balances and quantum leap in financial inclusion rate in recent times.

    She said: “Over the past 22 months, the CBN has, among others, rolled out exchange rate unification policy to minimize arbitrage opportunities and reduce volatility in the foreign exchange market and cleared over $7 billion of verified backlog of FX forwards.”

    She explained that the launch of Nigeria Foreign Exchange (FX) Code has improved governance in the forex market management, adding that the ongoing recapitalisation of banks will strengthen the resilience and global competitiveness of the banking sector, positioning it to support the $1 trillion dollar economy.

    Ali said the core objective of this engagement, therefore, is to sensitize members of the public on how the bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy.

    She explained that as a means of protecting banks’ customers and ensuring that they are not short-changed, the CBN launched the Unified Complaints Tracking System (UCTS), aimed at streamlining and improving the management of consumer complaints against financial institutions. The system,  alongside a USSD code (*959#) for verifying licensed institutions, enhances transparency and consumer protection in the Nigerian financial sector.

    “The core objective of this engagement, therefore, is to sensitize members of the public on how the Bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy,” she said.

    She said the CBN will continue to ensure availability of clean currency. “We, however, urge you to see the Naira as our critical symbol of national identity. Respect and keep it clean. Do not spray, hawk, mutilate or counterfeit the Naira,” she advised.

    Other stakeholders insisted that at the heart of the CBN strategy is its commitment to maintaining economic stability.

     “Administration prioritized an inflation targeting framework, which has been pivotal in controlling inflation and stabilizing the naira through careful adjustments in the monetary policy, rate and other instruments. The CBN has kept the economy on a steady course despite global economic headwinds,” they said.

     “This year has been marked by innovative reforms and realignments, significant upgrades were made to digital platforms, automating financial processes and implementing stringent cyber security measures to protect assets and data,” they said.

    The participants concerns around banking system stability, customer services and complaints were addressed by CBN team from the Other Financial Institutions Department, Payments System Policy Department, Consumer Protection and Financial Inclusion Department, Currency Operations and Branch Management Department, and Financial Markets Department.

  • CBN concludes forensic audit of FX forward contracts

    CBN concludes forensic audit of FX forward contracts

    The Central Bank of Nigeria (CBN) says it has completed a major forensic audit into the country’s foreign exchange transactions under the Retail Secondary Market Intervention Sales (RSMIS) scheme, declaring that the matter is now closed.

     This follows an 18-month investigation by the CBN in collaboration with authorised dealer banks and the global audit firm Deloitte, which reviewed all outstanding and undelivered FX forward contracts.

     FX forwards are contracts that allow businesses or individuals to lock in a specific exchange rate today for the purchase or sale of foreign currency at a future date. These contracts help protect against unexpected swings in exchange rates. In Nigeria, such contracts are used by importers, exporters, and other players in the foreign exchange market to manage currency risks.

     In a statement published on its website, the apex bank said it will no longer entertain any review or reopening of the audit process, describing such a move as both inefficient and impractical.

     According to the CBN “the findings have therefore met procedural fairness standards. The case of undelivered forward contracts is now concluded and closed,” it added.

     The CBN stated that the audit was based on a clear and transparent mandate. Deloitte, acting as an independent forensic expert, conducted a review of the forward contracts in question.

     The bank explained that it commissioned the audit to check the authenticity of all forward contracts that had not been delivered and to verify if they were lawful and followed the terms set by the relevant regulations. The goal, according to the Bank, was to protect Nigeria’s foreign exchange reserves, enforce market discipline, and make sure all players were treated fairly.

    The statement stressed that the audit was also in line with the Bank’s legal obligation to ensure that the country’s public financial resources are properly managed. The CBN said it had a duty to act when previous activities may have fallen short of expected standards.

    Read Also: Inside CBN’s strategy to tame inflation

     While restating its readiness to settle all valid FX obligations that follow market rules, the CBN advised banks and their customers to ensure their transactions are well documented, follow existing foreign exchange laws, and submit only genuine transactions for settlement.

     Furthermore, the apex bank said it is currently weighing appropriate legal action against those found to have broken the rules, based on the audit findings. It said it would be working with law enforcement and other regulatory bodies to take civil, administrative, or even criminal action where necessary.

     This audit exercise was first disclosed by the CBN Governor, Mr. Olayemi Cardoso, shortly after he assumed office in 2023.

     He had confirmed that Deloitte was hired to undertake a comprehensive forensic review of all FX-related dealings under the RSMIS framework, particularly in relation to undelivered forward contracts that had raised concerns about transparency and accountability in the management of Nigeria’s foreign exchange market.

  • CBN concludes forensic audit of FX forward contracts

    CBN concludes forensic audit of FX forward contracts

    The Central Bank of Nigeria (CBN) says it has completed a major forensic audit into the country’s foreign exchange transactions under the Retail Secondary Market Intervention Sales (RSMIS) scheme, declaring that the matter is now closed.

    This follows an 18-month investigation by the CBN in collaboration with authorised dealer banks and the global audit firm Deloitte, which reviewed all outstanding and undelivered FX forward contracts.

    FX forwards are contracts that allow businesses or individuals to lock in a specific exchange rate today for the purchase or sale of foreign currency at a future date. These contracts help protect against unexpected swings in exchange rates. In Nigeria, such contracts are used by importers, exporters, and other players in the foreign exchange market to manage currency risks.

    In a statement published on its website, the apex bank said it will no longer entertain any review or reopening of the audit process, describing such a move as both inefficient and impractical.

    According to the CBN “the findings have therefore met procedural fairness standards. The case of undelivered forward contracts is now concluded and closed,” it added.

    The CBN stated that the audit was based on a clear and transparent mandate. Deloitte, acting as an independent forensic expert, conducted a review of the forward contracts in question.

    The Bank explained that it commissioned the audit to check the authenticity of all forward contracts that had not been delivered and to verify if they were lawful and followed the terms set by the relevant regulations. The goal, according to the Bank, was to protect Nigeria’s foreign exchange reserves, enforce market discipline, and make sure all players were treated fairly.

    The statement stressed that the audit was also in line with the Bank’s legal obligation to ensure that the country’s public financial resources are properly managed. The CBN said it had a duty to act when previous activities may have fallen short of expected standards.

    Read Also: NNPC sacks pump attendant, suspends manager over misconduct

    While restating its readiness to settle all valid FX obligations that follow market rules, the CBN advised banks and their customers to ensure their transactions are well documented, follow existing foreign exchange laws, and submit only genuine transactions for settlement.

    Furthermore, the apex bank said it is currently weighing appropriate legal action against those found to have broken the rules, based on the audit findings. It said it would be working with law enforcement and other regulatory bodies to take civil, administrative, or even criminal action where necessary.

    This audit exercise was first disclosed by the CBN Governor, Mr. Olayemi Cardoso, shortly after he assumed office in 2023.

    He had confirmed that Deloitte was hired to undertake a comprehensive forensic review of all FX-related dealings under the RSMIS framework, particularly in relation to undelivered forward contracts that had raised concerns about transparency and accountability in the management of Nigeria’s foreign exchange market.

  • Bank recapitalisation gains ground as regulatory oversight deepens

    Bank recapitalisation gains ground as regulatory oversight deepens

    With eight banks already meeting recapitalisation targets and others progressing toward the March 2026 deadline, the Central Bank of Nigeria (CBN) has pledged continued oversight to ensure financial system stability. The Monetary Policy Committee (MPC) recently affirmed the sector’s resilience, citing steady performance in key Financial Soundness Indicators (FSIs), which are expected to strengthen further through the ongoing recapitalisation drive, reports Assistant Editor COLLINS NWEZE

    Nigerian banks are currently navigating one of their most defining moments. On one hand, they have been affirmed as safe and sound by members of the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC). On the other, they are making significant progress in their recapitalisation efforts—with eight banks already meeting the required threshold well ahead of the March 31, 2026 deadline.

    These developments reflect strong regulatory oversight and the clear resolve of the Olayemi Cardoso-led CBN to align with the federal government’s broader economic vision, particularly the ambitious goal of achieving a $1 trillion Gross Domestic Product (GDP) by 2030. This vision, articulated in the Policy Advisory Council’s report on the national economy, outlines key priority areas and strategies to drive growth. At the core of this strategy is a robust banking sector. A well-capitalised financial system is widely seen as essential to mobilise the funding and investment needed to reach the GDP target.

    In line with this, Governor Cardoso has urged banks to prepare for a new round of recapitalisation—ensuring they possess the financial strength required to fuel Nigeria’s economic transformation. Cardoso asked: “Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1tr economy in the near future? In my opinion, the answer is “No!” unless we take action. That action was the ongoing recapitalisation of banks, meant to prepare them for expansion and attract big ticket transactions to support economic growth.”

    While the recapitalisation exercise continues, the apex bank categorically reassured the public, depositors, and stakeholders that the Nigerian banking sector remains resilient, safe, and sound. “The CBN affirms that it continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision. These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system,” it said.

    The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in the financial system.

    Recapitalisation and what the law says

    The 2007 Central Bank of Nigeria Act mandates the apex bank as one of its objectives to promote financial system stability. The CBN ensures the safety and soundness of the financial system in Nigeria through banking sector reforms, improved access to finance, adequate institutional capacity building and implementation of good corporate governance practices. Analysts said ensuring financial and banking system stability is important because the failure of financial institutions, particularly banks, is capable of undermining public confidence, precipitate unanticipated contraction in money supply, reduce savings and investments, and induce payment system collapse with adverse effects on the real economy.

    More so, the stability of the financial system is very imperative since its achievement ensures effective monetary policy transmission mechanism. As such, ensuring financial system stability will help monetary authorities in achieving the primary objective of price stability. To achieve financial and banking system stability, the CBN at different times had instituted various reforms aimed at ensuring effective performance of the banking sector.

    The CBN had, on March 28, 2024 announced a two-year bank recapitalisation exercise which commenced on April 1, 2024. The recapitalisation plan requires minimum capital of N500 billion, N200 billion and N50 billion for commercial banks with international, national and regional licences respectively. Others included merchant banks N50 billion; non-interest banks with national license N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026.

    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 important to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he stated.

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    He added that Nigeria has what it takes to deepen financial inclusion and support the growth of business and economy. He said the recapitalisation exercise will also support the government’s efforts to achieve a $1 trillion economy. The CBN further underscored the importance of banking recapitalisation as a major catalyst for the achievement of the $1 trillion economy agenda of the government. “In the same vein, Other Financial Institutions (OFIs) hold significant potential to drive productivity and economic growth by expanding access to credit and financial services for underserved individuals and businesses. To unlock this untapped potential, we aim to strengthen key institutions—particularly Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs)—to enhance their efficiency and impact.

    “Our strategy includes implementing model mortgage foreclosure laws to stimulate lending and reduce delinquency, integrating PMBs and MFBs into the GSI platform to minimize non-performing loans, and leveraging Development Finance Institutions (DFIs) more effectively to provide increased on lending facilities to well-managed OFIs,” he said.

    Banking sector remains robust, says CBN

    Under the ongoing recapitalisation programme, the apex bank adopted a distinctive definition of minimum capital base, in addition of paid up share capital and share premium, excluding other reserves and retained profits. The distinctive definition implied that nearly all banks have to raise new capital, despite the fact that most banks have shareholders’ funds in excess of the minimum capital base.

    Cardoso explained that the banking sector remains robust, with key indicators reflecting a resilient system. “The non-performing loan ratio remains within the prudential benchmark of five per cent, showcasing strong credit risk management. The banking sector liquidity ratio comfortably exceeds the regulatory floor of 30 per cent, a level which ensures banks are maintaining adequate cash flow to meet the needs of customers and their operations. The recent stress test conducted also reaffirmed the continued strength of our banking system.

     “I am pleased to note that a significant number of banks have raised the required capital through rights issues and public offerings well ahead of the 2026 deadline. I believe that the banking sector is in a strong position to support Nigeria’s economic recovery by enabling access to credit for MSMES and supporting investment in critical sectors of our economy,” he said.

    The CBN Deputy Governor, Corporate Services, Ms. Emem Usoro, said the journey to a $1 trillion economy requires structured planning, clearly defined policies, unwavering implementation, and an inclusive approach that aligns public and private sector interests. Usoro said that one of the key components of the $1 trillion ambition is the recapitalisation of Nigerian banks. She noted that banks must be sufficiently capitalised to meet the financial demands of a larger and more dynamic economy. “As we work towards building a $1 trillion dollar economy, we must consider the recapitalisation of our banks to be able to fund, finance and power the economy, and to favourably compete globally,” Usoro said during a media engagement in Abuja.

    She further called for a collective effort from all stakeholders, adding that the financial system must be prepared to play its role in powering development. “We should particularly pay attention to bank recapitalisation to ensure that our banks are strong, resilient and stable enough to carry out financial intermediation, and the much-needed financing of development projects and programmes,” Usoro said.

    The Group Managing Director of United Bank for Africa (UBA), Oliver Alawuba, described the ongoing CBN bank recapitalisation policy as both timely and essential in positioning the financial system to meet the demands of a growing and globally competitive economy. According to Alawuba, the initiative is expected to boost the resilience of the banking sector by strengthening its capacity to withstand economic shocks such as inflation, currency volatility and global geopolitical disruptions. He noted that the policy will also place Nigerian banks on a stronger footing to finance the country’s long-term economic transformation, including funding of large-scale infrastructure and industrial projects.

    Alawuba further stressed that the recapitalisation policy goes beyond regulatory compliance. It is a forward-looking strategy aimed at equipping Nigerian banks to operate at the scale and sophistication required by a trillion-dollar economy. He said the move would enhance the sector’s ability to support traditional economic drivers such as oil and gas, agriculture and manufacturing, as well as emerging sectors such as fintech, green energy and infrastructure development. “Nigerian banks need adequate capital buffers to meet the evolving demands of these sectors. Without this, the industry cannot effectively rise to the challenge,” he said.

    Alawuba further pointed out the sharp contrast between Nigerian banks and their counterparts in more advanced economies, where bank assets typically range between 70 and 150 per cent of Gross Domestic Product (GDP). In Nigeria, bank assets accounted for just 11.97 per cent of GDP as of 2024, a gap he said must be addressed if the country’s financial system is to align with international standards. He commended the CBN’s recent directive mandating a significant increase in minimum capital thresholds, describing it as recognition of the urgent need for stronger financial institutions capable of delivering on national priorities such as infrastructure expansion, digital transformation, inclusive financial services and economic diversification. Alawuba concluded that a robust, well-capitalised banking sector is critical for Nigeria’s aspiration to become a one trillion-dollar economy, and the recapitalisation drive is a forward-looking step to achieve that goal.

    According to Olubuka  Akinwunmi, Director of the Banking Supervision Department at the CBN, banks have so far remained within the prudential thresholds stipulated by the regulator, including benchmarks for capital adequacy ratio and non-performing loans. “Currently, all our banks are still within the prudential thresholds that were set. And they are actively pursuing various recapitalisation efforts,” Akinwunmi said.

    On the possibility of mergers and acquisitions, Akinwunmi said such developments may occur naturally as banks assess their positions and seek strategic alignments. “Banks are currently focused on raising their own capital, but engagements are ongoing and when the opportunities arise, they will be taken,” Akinwunmi added.

    On compliance, the CBN stated that starting in 2025, financial institutions will be required to refine their compliance and governance frameworks to address evolving risks. “We are enhancing regulatory effectiveness and accountability, as demonstrated by recent changes to our supervisory and enforcement approach. Recently, penalties totaling N15 billion were imposed on 29 banks for breaches, including AML/CFT violations.

    “In addition to these penalties, the banks are required to address the root causes of the lapses, which is crucial for improving regulatory effectiveness. Historically, the industry has struggled with recurring issues, but we are confident that this approach will help change that narrative.”

  • CBN: eight banks meet recapitalisation threshold

    CBN: eight banks meet recapitalisation threshold

    • MPC retains interest rate, other parameters
    • Apex bank targets single digit inflation

    Eight banks have successfully met the new minimum capital requirements stipulated for their licenses, the Central Bank of Nigeria (CBN) confirmed yesterday.

    Banks started raising funds last year to meet the CBN’s recapitalization requirement which has a March 2026 deadline.

    Speaking at a news conference in Abuja at the conclusion of the two-day Monetary Policy Committee (MPC) meeting, Governor of CBN, Olayemi Cardoso, said many banks had made significant progress in strengthening their capital base to align with the new regulatory threshold.

    “The MPC noted that eight banks have fully met the recapitalisation requirements, while others are making progress towards meeting the deadline,” Cardoso said.

    Under the ongoing recapitalisation programme launched in March 2024, the apex bank adopted a distinctive definition of minimum capital base, in addition of paid up share capital and share premium, excluding other reserves and retained profits.

    The distinctive definition implied that nearly all banks have to raise new capital, despite the fact that most banks have shareholders’ funds in excess of the minimum capital base.

    Particularly, commercial banks with international licenses are required to have minimum share capital and share premium of N500 billion, while others with national banking licenses are required to have minimum share capital and share premium of N200 billion by the deadline of March 31, 2026.

    The initial fund raising by banks had recorded huge success with most offers oversubscribed. Banks raised more than N2 trillion in 2024.

    With less than nine months to the March 31, 2026 deadline, many banks are preparing to raise new capital, including some tier-1 banks that had participated in the 2024 round and were looking to close the remaining gap before the end of fourth quarter 2025.

    The CBN said the recapitalisation policy was designed to ensure financial system stability, strengthen banks’ capacity to finance large-scale economic projects, and align with global standards of risk-based supervision.

    Cardoso explained that the ongoing recapitalisation initiative is helping to reinforce the sector’s resilience, with key Financial Soundness Indicators (FSIs) showing sustained stability.

    MPC retains rates

    The Committee decided to retain all monetary policy parameters in order to consolidate the recent gains in inflation control and price stability. The benchmark Monetary Policy Rate (MPR) remains at 27.50 percent, with an asymmetric corridor of +500/-100 basis points. The Cash Reserve Ratio (CRR) was maintained at 50.00 percent for deposit money banks and 16.00 percent for merchant banks. The Liquidity Ratio was also held steady at 30.00 percent .

    This decision, the CBN Governor said, was taken to “sustain the momentum of disinflation and sufficiently contain price pressures,” noting that Nigeria has begun recording gradual improvement in inflation dynamics.

    “We will continue to use every tool available—MPR, CRR, and ensuring an efficient foreign exchange market—to bring down inflation to significant levels,” he said.

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    Cardoso stated that managing inflation expectations remains a key focus for the Bank, and transparency in policy direction will help guide public and investor sentiment.

    “We are determined to ensure that we use all the different tools at our disposal. Inflation expectations will be managed in a way that the public understands the direction of the policy. We are committed to transparency,” he said.

    But for the Chief Executive Officer, Center for the promotion of Private Enterprise (CPPE), Dr Muda Yusuf, a hold in the CBN rates was expected because as long as inflation has not significantly moderated, it is most unlikely that the CBN will cut rates.

    He explained that even though the headline inflation decelerated marginally to 22.22 per cent, the month-on-month headline inflation increased, while the sub-index, that is the food inflation, also increased on month-on-month. The core inflation increased on month-on-month.

    According to him, these were some of the arguments that the CBN also referenced in justifying the decision to hold rates. He further explained that given that situation and given the fact that the economy is still contending with other factors driving inflation, for example, energy costs, insecurity, the exchange rate, the cost of fund, cost of logistics, means that they keep exerting pressure on the supply side.

    “So we take all of these things together, it is no surprise that the CBN did not opt for a realisation of the monetary policy rates or other rates for that matter. So from the perspective of the CBN, this is what is expected,’ he said.

    Yusuf said that there is the need to make cheaper funds available for the economy, for investors, but interest rate at over 30 percent is very prohibitive because it impedes growth and investment.

    Also, the Nigeria Employers’ Consultative Association (NECA) commended the Central Bank of Nigeria’s Monetary Policy Committee (MPC) for maintaining a tight policy stance in July 2025.

    NECA’s Director-General, Adewale-Smatt Oyerinde, said yesterday that the move was necessary to consolidate economic gains and support long-term macroeconomic stability.

  • Eight banks meet N500bn recapitalisation target ahead of deadline — CBN

    Eight banks meet N500bn recapitalisation target ahead of deadline — CBN

    Eight commercial banks have successfully met the Central Bank of Nigeria’s (CBN) N500 billion recapitalisation requirement ahead of the March 2026 deadline, the apex bank confirmed on Tuesday.

    Speaking at a press briefing in Abuja after the two-day Monetary Policy Committee (MPC) meeting, the Governor of the CBN, Olayemi Cardoso, disclosed that several banks had made significant progress in strengthening their capital base to align with the new regulatory threshold.

    “The MPC noted that eight banks have fully met the recapitalisation requirements, while others are making progress towards meeting the deadline,” Cardoso announced.

    The CBN launched the current banking sector recapitalisation programme in March 2024 to increase the minimum capital base of commercial banks to N500 billion. The policy, according to the apex bank, is designed to ensure financial system stability, strengthen banks’ capacity to finance large-scale economic projects, and align with global standards of risk-based supervision.

    Cardoso explained that the ongoing recapitalisation initiative is helping to reinforce the sector’s resilience, with key Financial Soundness Indicators (FSIs) showing sustained stability.

    The Committee decided to retain all monetary policy parameters to consolidate the recent gains in inflation control and price stability. The benchmark Monetary Policy Rate (MPR) remains at 27.50 percent, with an asymmetric corridor of +500/-100 basis points. The Cash Reserve Ratio (CRR) was maintained at 50.00 percent for deposit money banks and 16.00 percent for merchant banks. The Liquidity Ratio was also held steady at 30.00 percent .

    This decision, the CBN Governor said, was taken to “sustain the momentum of disinflation and sufficiently contain price pressures,” noting that Nigeria has begun recording gradual improvement in inflation dynamics.

    “We will continue to use every tool available—MPR, CRR, and ensuring an efficient foreign exchange market—to bring down inflation to significant levels,” he said.

    Cardoso stated that managing inflation expectations remains a key focus for the Bank, and transparency in policy direction will help guide public and investor sentiment.

    “We are determined to ensure that we use all the different tools at our disposal. Inflation expectations will be managed in a way that the public understands the direction of policy. We are committed to transparency,” he said.

    The MPC noted improving conditions in the foreign exchange market, buoyed by increased capital inflows, a rise in non-oil exports, a rebound in crude oil production, and reduced import volumes.

    CBN Governor Olayemi Cardoso disclosed that Nigeria’s external reserves had risen to $40.11 billion as of July 18, 2025, which equates to approximately 9.5 months of import cover for goods. This development, he said, reflects growing confidence in the economy and improved forex liquidity conditions.

    He also acknowledged that the spread between the official and parallel market exchange rates has narrowed significantly, with several banks now permitting the use of naira debit cards abroad — a development that marks a return to normalcy and reflects improvements in market confidence.

    “The differences that we had between the current market rate and the official rate, you can all see it yourselves. Some of the banks are now allowing you to use your Naira card when you travel. Those things are here to stay. They are not a short-term measure,” he said.

    Cardoso noted that these positive developments are a result of ongoing reforms aimed at improving transparency, rebuilding trust, and attracting foreign investment.

    “A lot of what you see going on now is transformational, and they are here to stay,” he remarked.

    The MPC welcomed recent economic performance figures, particularly the 3.13 percent growth in real Gross Domestic Product (GDP) recorded in the first quarter of 2025. This, Cardoso noted, compares favourably with 2.27 percent recorded in Q1 2024 and 3.38 percent in the preceding quarter of Q4 2024.

    In addition, the latest data from the Purchasing Managers Index (PMI) indicate that the economy is on an expansionary path, pointing to positive business sentiment and increased output in the non-oil sector.

    “The Nigerian economy remains on an expansionary path, and we are confident that the reforms implemented so far will continue to yield positive outcomes,” the Governor said.

    On food security, the MPC commended the Federal Government’s ongoing efforts to improve security across farming communities, which has contributed to increased agricultural activity. Members also encouraged further support through timely access to high-yield seedlings, fertilisers, and other critical inputs during the current farming season.

    Food inflation has been one of the key drivers of headline inflation in recent months. The CBN said it has worked closely with other agencies to address underlying supply constraints while managing monetary factors through its policy instruments.

    Cardoso reiterated the importance of consistent policy implementation and cross-sectoral collaboration to ensure a stable macroeconomic environment that can attract investment.

    “We have to be consistent in all our policies, build trust, and create an enabling environment for investment—both foreign and domestic,” he said. “Nobody wants to invest where there is policy uncertainty. Our goal is to reduce that uncertainty and provide a stable and predictable investment climate.”

    The Governor noted that international institutions such as the IMF and other development partners have taken note of Nigeria’s recent economic progress, describing the signs as positive and encouraging for sustained recovery.

    The Central Bank signalled its intention to continue adopting a data-driven approach in assessing inflation trends, economic performance, and global developments to inform future policy decisions. 

    The recapitalisation of the banking sector is expected to further strengthen the financial system’s capacity to support large-scale private sector-led investments and industrialisation.

  • JUST IN: CBN maintains interest rate at 27.5%

    JUST IN: CBN maintains interest rate at 27.5%

    The Central Bank of Nigeria (CBN) has, once again, kept its key lending rate, known as the Monetary Policy Rate (MPR), at 27.5 per cent.

    The Governor of CBN, Yemi Cardoso, announced the decision on Tuesday in Abuja, following the 301st Monetary Policy Committee (MPC) meeting.

    Cardoso said that all 12 MPC members voted unanimously to hold all key monetary parameters.

    The committee, thus, retained the cash reserve ratio at 50 per cent for deposit money banks and 16 per cent for merchant banks.

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    It also retained liquidity ratio at 30 per cent, and the asymmetric corridor was held at +500/-100 basis points around the MPR.

    The News Agency of Nigeria reports that with this decision, the MPC has retained the rates for three consecutive meetings.

    NAN

  • Appeal Court voids N579b judgment given against CBN, AGF in stamp duty dispute

    Appeal Court voids N579b judgment given against CBN, AGF in stamp duty dispute

    The Court of Appeal in Abuja has set aside an October 11, 2024 judgment by Justice Inyang Ekwo of the Federal High Court (Abuja), ordering the Central Bank of Nigeria (CBN) and the Attorney General of the Federation (AGF) to pay a firm – Kasmal International Services – N579,130,698,440 for assisting the Nigerian Postal Service (NIPOST) to collect stamp duty between  January 1, 2015 and  January 31, 2020.

    In a split decision of two-to-one, the Court of Appeal held on Wednesday that Kasmal, an entity promoted by the late chieftain of the Peoples Democratic Party (PDP), Buruji Kashamu, did not deserve any payment in relation to any stamp duty collection.

    In the lead majority judgment, Justice Adebukola Banjoko held among others, that Kasmal had no legal right to be engaged by NIPOST for stamp duty collection from the outset.

    Justice Banjoko found that Kasmal lacked the necessary locus standi (legal right) to make claim to any lawful entitlement or commission as it did in the suit decided in its favour by Justice Ekwo.

    She said, “You cannot give what you don’t have,” and noted that since NIPOST lacked the statutory authority to manage or collect stamp duties, it cannot delegate powers that it does not have to Kasmal.

    Justice Banjoko held that the Federal High Court “erred in declaring that Kasmal was entitled to the said commission, when in law, there was no legal contract from the beginning between Kasmal and NIPOST.

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    She further held that the suit filed by Kasmal before the Federal High Court, which led to the October 11, 2024 judgment, was fundamentally defective.

    Justice Banjoko proceeded to allow the appeal filed by CBN and Attorney General of the Federation (AGF), marked: CA/ABJ/CV/1266/2024.

    Justice Oyebola Oyewumi agreed with Justice Banjoko, while Justice Okon Abang dissented.

    Justice Abang said he found it extremely difficult to agree with the majority decision that the transaction in question was illegal.

    “My conscience will not allow me if I should follow the majority,” he added.

    Abang held that, by ratifying the contract and paying N10.3billion to Kasmal, the AGF and CBN could no longer keep the proceeds meant for Kasmal.

    He added, “The doctrine of unjust enrichment frowns at a party, who uses the law to retain the benefit conferred by another without offering compensation.”

    Justice Ekwo had, in his October 11, 2024 judgment in the suit marked: FHC/ABJ/CS/335/2024 filed by Kasmal, ordered the CBN to among others, pay Kasmal N579,130,698,440 for assisting NIPOST to collect stamp duty between  January 1, 2015 and  January 31, 2020.

    He also ordered the CBN to pay the N579 billion judgment sum along with 10 percent interest per annum.

    Justice Ekwo faulted the defendants’ contention that NIPOST lacked the statutory power to collect stamp duties and that the agreement it (NIPOST) reached with the plaintiff was illegal.

    The judge declared that a previous judgment on stamp duty given in favour of the plaintiff still subsisted as it is yet to be contradicted by any higher court.

    Justice Ekwo also faulted the argument by the CBN and the AGF that the reliefs sought by the plaintiff could not be granted because all revenues accruing to the federation, including the stamp duties, are remitted into the Federation Account, which could only be distributed among the tiers of government as provided in the Constitution.

    The judge noted that the CBN had earlier paid Kasmal N10.3 billion, representing 15 percent of the remitted stamp duty paid by all Deposit Money Banks (DMBs) between January 1, 2015, and January 31, 2020, from the CBN NIPOST Stamp Duty Collection Account No. 3000047517.

    Justice Ekwo said, “I find, at the end, that the CBN and the AGF have not effectively controverted the case of the plaintiff. The plaintiff, having made a credible case, ought to succeed on the merit, and I so hold.

    “It is my opinion that this case is predicated on the fact that the first and second defendants have had transactions with the plaintiff before by paying the plaintiff the sum of N10.3billion, being 15 percent of remitted stamp duty.”

    The plaintiff, represented by Dr. Alex Izinyon (SAN), had claimed that NIPOST appointed it to represent it (NIPOST) in the collection of N50 on all receipts given by any bank or financial institution in acknowledgement of services rendered concerning electronic transfers and teller deposits of N1,000 and above, in compliance with the Stamp Duties Act and the Nigeria Financial Regulations 2009.

    He added that the terms of the agreement between NIPOST and the plaintiff included the remuneration of N7.50 from every N50 deduction.

    Kasmal prayed the court for an order directing the first and second defendants – CBN and AGF – to pay the plaintiff the sum of N579,130,698,440 or any other sum as may be adjudged by this Court upon the production of the records relating to the collection of stamp duty between January 1, 2015, and January 31, 2020, representing 15% of all accrued deposits paid into or which ought to have been paid into the CBN NIPOST Stamp Duty Collection Account No. 3000047517 by all Deposit Money Banks (DMBs).

    “An order directing the first and second defendants to pay the plaintiff an interest payment of 10% per annum on the sum of N579,130,698,440 or any other sum as may be adjudged by this Court upon the production of the records relating to the collection of stamp duty between January 1, 2015, and January 31, 2020, representing 15% of all accrued deposits paid into or which ought to have been paid into the CBN NIPOST Stamp Duty Collection Account No. 3000047517 by all Deposit Money Banks (DMBs).”