The Nation Newspaper

Tag: Central Bank of Nigeria

  • CBN orders banks to keep database of fraudulent customers

    CBN orders banks to keep database of fraudulent customers

    The Central Bank of Nigeria ( CBN ) on Thursday directed banks to establish a database of their customers identified through their Bank Verification Numbers (BVNs) to be involved in confirmed fraudulent activities.

    The directive is contained in the Regulatory Framework for Bank Verification Number (BVN) Operation and Watch-list for Nigerian Financial System released by the CBN. The implementation of the framework is with immediate effect.

    CBN Director Banking & Payments System Dipo Fatokun, who signed the framework, said bank customers are to abide  by  the  regulatory  framework for  BVN  operations and  the watch-list for the Nigerian Banking Industry and also report all suspicious or unauthorised activities on their accounts.

    Data from the CBN showed that Nigeria experienced a total of 3,500 cyber-attacks with 70 per cent success rate and loss of $450 million within the last one year mainly through cross channel fraud, data theft, email spooling, phishing, shoulder surfing and underground websites.

    Although e-fraud rate in terms of value dropped by 63 per cent, after the BVN introduction and improved collaboration among banks via the fraud desks, the total fraud volume rose significantly by 683 per cent.

    The new regulation is expected to assist the CBN to a great deal, in curbing the menace of fraudsters

    According to Fatokun, the new framework is in exercise of the powers conferred on the CBN, by Sections 2 (d) and 47 (2), of the CBN Act, 2007, to promote the development of efficient and effective payments systems for the settlement of transactions.

    He said the framework provides standards for the BVN operations and watch-list for the Nigerian Banking Industry. The watch-list comprises a database of bank customers’ identified by their BVNs, who have been involved in confirmed fraudulent activity in the banking industry in Nigeria.

    Fatokun said the regulatory framework shall guide activities of the participants in the provision of the BVN operations in Nigeria and that the CBN, Nigeria Inter-Bank Settlement System (NIBSS), Deposit Money Banks (DMBs), Other Financial Institutions (OFIs) and Bank Customers are participants in its implementation.

    He said the CBN, in collaboration with the Bankers Committee, proactively embarked upon the deployment of a centralized BVN System and launched the BVN in February, 2014. This, he said, is part of the overall strategy of ensuring effectiveness of the Know Your Customer (KYC) principles, and the promotion of a safe, reliable and efficient payments system.

    The BVN gives a unique identity across the banking industry to each customer of Nigerian banks.

    “This framework also defines the establishment and operations of a Watch-list for the Nigerian Banking Industry, to address the increasing incidences, of frauds, with a view to engendering public confidence in the banking industry.

    This framework, without prejudice to existing laws, is a guide for the operations of the watch-List in the Financial System”.

    The Watch-list is a database of bank customers identified by their BVNs, who have been involved in confirmed fraudulent activities.

    The framework is expected to clearly define the roles and responsibilities of stakeholders; clearly define the operations of the BVN in Nigeria; define access, usage and management of the BVN information, requirements and conditions and provide a database of watch-listed individuals.

    It is also expected to outline the process and operations of the watch-List and deter fraud incidences in the Nigerian Banking Industry.

    In implementing this framework, the CBN is expected to approve the Regulatory Framework and Standard Operating Guidelines as well as approve eligible users for access to the BVN information.

    The Nigeria Interbank-Settlement System (NIBSS) is to collaborate with other stakeholders to develop and review the Standard Operating Guidelines of the BVN while the banks are to ensure proper capturing of the BVN data and validate same before the linkage with customers’ accounts.

  • Decision to retain monetary policy rate by CBN is good- Expert

    Decision to retain monetary policy rate by CBN is good- Expert

    An economic expert, Uche Uwaleke, has expressed support for the continued decision by the Central Bank of Nigeria (CBN) to retain the country’s Monetary Policy Rate (MPR).

    Uwaleke, an Associate Professor and Head of Banking and Finance at the Nassarawa State University, Keffi, said this in an interview with the News Agency of Nigeria (NAN) in Abuja.

    The don noted that the rate of inflation in the country was higher than the policy rate; a development he said made the real interest rate in the economy to be in the negative.

    Uwalek explained that bringing down the MPR would further pull the interest rate into the negative territory which would not augur well, especially for foreign investments.

    He said: “The positive macroeconomic indicators witnessed in recent times are still fragile and vulnerable to oil price shock.

    “The Q2 GDP growth was chiefly driven by the oil sector.

    ‘’Similarly, improvement in capital importation was more from the highly volatile portfolio investment and retreating headline inflation is partly accounted for by baseline effect.

    “Besides, at 16.01 per cent (August), the inflation rate is significantly higher than the upper band of nine per cent set by the CBN.

    “Real interest rate in the economy is negative since the rate of inflation is higher than the policy rate.’’

    According to Uwaleke, one will have thought it was time to signal a gradual easing of the policy rate after being held at 14 per cent since July 2016, to tame high inflation and stabilise the exchange rate.

    He said that this was expected, considering the waning headline inflation, some level of stability in the exchange rate and the marginal positive growth in real GDP recorded in the second quarter.
    “A lower MPR is expected to translate to reduced lending rates, increased access to funds by the real sector and cheaper cost of capital for firms leading to more job opportunities.

    “ An accommodative monetary policy stance at this time is also expected to reduce the high cost of debt service by the government which has been crowding out public spending.

    “But this is not the case, as a reduced policy rate will not be beneficial for the country’s economy at the moment.’’

    According to Uwaleke, cognizance should be taken of the uncertainty in the global environment, especially the normalisation of interest rates in the United States.
    The don explained that the US environment had the effect of strengthening the dollar with adverse consequences for the economies of developing countries and the seemingly complicated Brexit negotiations.
    “Therefore, taken together, it does appear that the balance of risks is in favour of not tinkering with the policy configuration for the time being to give some more space for the policies to work.

    “ The primary mandate of the CBN, as spelt out in the CBN Act of 2007, is to maintain price and exchange rate stability, therefore, the decision to hold the rates is dictated by this obligation.’’

    The expert, however, noted that complementary fiscal policies were therefore required to bring about full employment and inclusive growth in the country.

    He said the implementation of the 2017 budget, especially the capital component in line with the government’s Economic Recovery and Growth Plan, should be pursued with vigour.

    According to him, the effort will ensure the success of the economic recovery and growth plan.

    NAN reports that the Monetary Policy Committee (MPC) of the CBN retained the benchmark lending rate and other monetary policy rates against a backdrop of macroeconomic stability.

    The committee also retained 14 per cent, Cash Reserve Ratio at 22.5 per cent and Liquidity Ratio at 30 per cent and Asymmetric corridor at +200 and -500 basis points around the MPR.

  • Forex: CBN goes tough on Banks

    Forex: CBN goes tough on Banks

    The Central Bank of Nigeria (CBN) has threatened to sanction any Deposit Money Bank (DMB) in breach of its instruction to them to open teller points for retail forex transactions and have electronic display boards in all their branches, showing rates of all trading currencies. 

    The warning is coming on the heels of the CBN sustaining its intervention in the various sectors of the inter-bank Foreign Exchange market with the injection of $545 million.

    A circular issued by the apex bank warned that “the CBN would mete out stiff regulatory sanctions to banks that fail to comply fully with the directive by October 13, 2017.”

    The circular signed by the Director, Banking Supervision, Ahmad Abdullahi, stressed that “the Bank would bar erring DMBs from all future CBN foreign exchange interventions.”

    It will be recalled that the CBN in March 2017 had directed banks and authorized dealers to open a teller point for retail FX transactions (PTA/BTA and SME) including buying and selling, in all locations in order to ensure access to foreign exchange by their customers and other users, without any hindrance. 

    The March 2017 circular also directed DMBs to have electronic display boards in all their branches, showing rates of all trading currencies, which it urged customers to insist on in processing their foreign exchange transactions for invisibles and the SMEs window. 

    While noting that the objective was aimed at creating awareness among members of the public regarding the availability of such facilities in branches of the banks at clearly disclosed prices, the CBN frowned at the banks for not fully complying with its directives. 

    Accordingly, the CBN has given the erring banks a four-week period, expiring on October 13, 2017, to fully comply with its directives or face regulatory sanctions, which it noted include but not limited to being barred from all future CBN foreign exchange interventions.

    Meanwhile, giving a breakdown of the Bank’s latest forex injection, its Acting Director, Corporate Communications, Isaac Okorafor, revealed that the retail Secondary Market Intervention Sales (SMIS) received the largest intervention of $285 million. Other components of the released figures include the $100 million offered for wholesale SMIS, $90 million for Small and Medium Enterprises (SMEs) window and $70 million for invisibles such as Basic Travel Allowances, tuition fees and medical payments.    

    According to Okorafor, the amount released underscored the CBN’s avowed commitment to ensure a liquid interbank foreign exchange market, where all genuine requests will be met in line with extant forex guidelines.

    Speaking further, the CBN spokesperson expressed optimism that, with the accretion to the nation’s foreign reserve, the Bank would continue to fulfil its mandate of safeguarding the international value of the legal tender. He further disclosed that the Bank’s management also remained optimistic about achieving a convergence between the forex rates at both the inter-bank and BDC segments.

  • Nigerians urged to register for National ID Card

    Nigerians urged to register for National ID Card

    The Managing Director, News Agency of Nigeria (NAN), Mr Bayo Onanuga, has called on all eligible Nigerians to register with the National Identity Management Commission (NIMC), to obtain the national electronic identity card.

    Onanuga made this call when he visited the commission’s Acting General Manager, Operations/Regional Coordinator, North Central, Mrs. Florence Oloruntade, on Thursday in Abuja.

    He urged all eligible Nigerians to register without further delay to avail themselves of the benefits available in obtaining the card.

    He noted that the importance of the card cannot be overemphasised as one would hardly transact any government or other business these days without such identification, adding that the card identifies one for life.

    While responding, Oloruntade explained that the National Identity Number(NIN) is the most important token issued by the Federal Government of Nigeria for citizens and legal residents to assert their identities.

    She said Nigerians should note that the NIN, which is issued after successful enrolment on a slip, is the foundational identity of the holder stored on the National Identity Database.

    “The NIN can be verified and authenticated by institutions and persons in both the public and private sectors, using the verifications and authentication platform already deployed by the Commission.

    “The NIN verification portal has been deployed for banks and other service providers to take advantage for the purpose of ease of doing business,” she said.

    She disclosed that the Central Bank of Nigeria (CBN), has also directed the banks accordingly on the database.

    She further advised Nigerians who have lost their NIN slip to visit the nearest NIMC state office and request for a reprint, which will only cost N500 deposit into the government’s coffer.

    Oloruntade also said that Nigerians can make use of the Commission’s website to check the status of their National e-ID Card.

    “What you have to do is to login to the web portal and follow the link.

    “Click the proceed button, fill in your First Name, Last Name and the last 6-digits of your NIN.”

    She further disclosed that the NIMC is partnering the Abuja Chamber of Commerce and Industry to enroll all participants who will attend the 12th Abuja International Trade Fair, 2017, and issue them the National Identification Number (NIN).

    She, therefore, urged participants and visitors who will be at the fair to take advantage of the opportunity to enroll at the NIMC enrolment stand.

    “Enroll for the NIN today, and be identified for life,” she added.

  • CBN Anchor Borrowers: Okowa launches harvest, sales of fish in Delta

    Delta State Governor Ifeanyi Okowa  on Wednesday launched the harvest and sales of fish under the Central Bank of Nigeria (CBN) Anchor Borrowers Programme in Okelle Farms, Ugbisi, Udu Local Government area of the state.

    Okowa commended Mega Fish Farmers Co-operatives Union for keying into the programme known as “Private Window’’ in line with the states agenda.

    The governor said the agricultural sector suffered neglect over the years due to dependence on oil in spite of its potential to create jobs, food and develop the country.

    Okowa stressed the need for Nigerians to embrace agriculture because oil was no longer dependable.

    He urged people not to continue to depend on government alone for support and called on well meaning Nigerians and community leaders to support people to go into agriculture.

    The governor, who lauded the CBN for spending N1.2 billion so far on the programme, said the programme had succeeded in producing 2,046 tonnes of fish in four months.

    “We are happy when this window came and CBN, Bank of Agriculture supported us in rice, cassava and aquaculture (fish) production.

    “I am glad to hear that the Mega Fish Farmers have employed over 2,000 workers and currently training 300 youths.

    “I wish to thank you for embracing this programme and it is my hope that in the next five years, you will record more successes.”

    He advised the people to sustain atmosphere of peace to ensure security and development in the area and the state at large.

    The Branch Controller, CBN, Asaba, Mrs Elizabeth Agu, said that CBN had so far spent N1.2 billion on the Private Window of the programme, which has over 4,000 fish farmers.

    She commended the participating farmers for effectively utilising the funds made available to them for expansion as well as engaging more people in the scheme.

    Prince Niyi Akenzua, Executive Director, Finance and Risk, BOA said that the bank was committed to keeping its mandate of ensuring that the people were empowered through agriculture.

    Akenzua said the partnership between the state government and the farmers should be strengthened to ensure empowerment of the rural communities through agriculture.

    Mr Chris Egwuyenga, Chairman, Mega Fish Farmers Cooperatives Union, said with the support being given to the programme t the state would soon be placed on the map of fish cultivation in Nigeria and abroad.

    “It will interest you to know that Mega Fish Farmers with 682 profiled farmers for the first batch has turned out 2,046 tons of fish.

    “This translates to employment, generated directly and indirectly, of over 2000 workers in line with the state agenda and prosperity for all.

    “Still under the programme, about 300 youths are undergoing training with us to acquire fish farming skills.’’

    “Through this programme designed by CBN and with the support of the state government, we are optimistic that food security in terms of protein requirement of Deltans is assured,” Egwuyenga said.

  • Experts task CBN on Cryto currency trade in Nigeria

    Experts task CBN on Cryto currency trade in Nigeria

    The Chief Executive Officer of Xchangerate.oi, Mr Peter Moradeyo has called on the Central Bank of Nigeria to come up with a profound policy framework for the adoption and trading in Crypto currency in Nigeria.

    Moradeyo said this at the launching of its CBM 2.0 model of Crypto currency trade held recently at Eko Hotel recently in Lagos. The programme also features graduation ceremony of 16 people who participated in their 30 days online training programme and awards were given to supportive staffs and customers.

    He said that the Crypto currency trade is a growing phenomenon in Nigeria that requires proper education and policy framework for its users so that they will not be scammed.

    He noted that although the Central Bank of Nigeria had earlier announced that Nigerians should be weary of a crypto currency trade, said mere announcement cannot deter people who are spending their own money but the regulatory agency can help in providing proper education and direction.

    Moradeyo, who is also The Principal Consultant, Crypto Plus Certified said “you cannot stop people from spending their money the way they want.  We can only advise them on what and how to better use their money”.

    He said: “CBN should tell us what it is and what is not. They need to advise us appropriately so that everyone will be guided to make the right decision. They need to properly let Nigerians understand the concept of Crypto currency trade and see how they can help the users have the correct information. So when the users appreciate it correctly, they are able to make their inform decision.

    He noted that Crypto currency is a digital asset from block chain technology designed to work as a medium of exchange using cryptography to secure transactions and to control the creation of additional units of the currency. Crypto currencies are a subset of alternative currencies or specifically digital currencies.

    He opined that that Automated Teller Machines (ATM) for crypto currencies have been launched in Canada, U.K. Germany, South Korea, Brazil, India, with the sole aim of aiding banking technology,
    He added that the continued red light by the Central Bank of Nigeria against it, while other countries are beating us to it is not the best. It is imperative that they let Nigerians know how they can take advantage of it.

    Moradeyo, who restated the commitment of its company with the new CBM Model said that crypto currency market is growing massively and we want to get 2, 500 people on board so they can take advantage of the opportunities in the Crypto currencies market.

    He said: “The government should live up to their responsibility and have their interest at heart and release a statement that is favourable to Nigerians them and educate them correctly, so they can benefit and be enlisted as participants in the normal trading of Cryptocurrency.”

  • Depositors want CBN to address challenges of ATM failures

    Depositors want CBN to address challenges of ATM failures

    Some bank customers in the South-East have urged the Central Bank of Nigeria (CBN) to compel commercial banks to urgently address challenges facing transactions with ATMs at weekends and national public holidays.

    The customers made the appeal in separate interviews with the News Agency of Nigeria (NAN) on Monday while expressing frustration, anger and anxiety due to the poor performance of the ATMs in banks during the long Eid-el-Kabir holidays.

    In Abakaliki, there were long queues at many ATM points during the holidays due to network failures and cash shortages.

    NAN reports that customers were seen shuttling from one bank to another in efforts to make withdrawals.

    But bank officials attached to the ATMs declined to make comments.

    Customers have questioned the CBN for encouraging the banking public to use electronic payment system when they could not fix the problems associated with the e-banking.

    “Nigerian banks should upgrade their technology for the cashless policy of the Federal Government to meet demands of the ATM banking public.

    “Banks should arrange for technical staff that will attend to cash shortages or network failures; Nigerians do not deserve this kind of a situation,” the customers said.

    Mr Charles Eze, who spoke to NAN at one of the commercial banks at Ogoja Road in Abakaliki, said that he was at the bank since 9.00a.m, but said that network had been on and off, keeping customers waiting and frustrated.

    “I am here to withdraw money for the family needs, but I cannot; it is frustrating indeed.

    “It is sad that we are still experiencing this kind of situation. It is important that the banks deploy robust technologies for e-banking,” Eze said.

    Another depositor, Mrs Eucharia Agbo, urged bank operators to find a lasting solution to the problems Nigerians were facing in using e-banking platforms for cash transactions, especially during the weekends and public holidays.

    Agbo, a teacher in Model Urban Secondary School, Abakaliki, said network failures and cash shortages at ATMs being experienced by the customers had become a regular feature during weekend periods and public holidays.

    “Let banks bring in robust technology that will boost the e-banking business to eliminate the embarrassment and frustration that their clients are subjected to, especially during public holidays and weekends,” she said.

    Lawrence Obiekwena and Magnus Okereke, civil servants narrating their harrowing experiences, said that it was time Nigerian banks prepared for situations like this.

    “This kind of thing cannot happen in the developed economy. Nigeria banks lack customer-care.

    “We do not see the reason banks cannot brace up for this kind of challenge.

    “Do we deserve this kind of suffering? It is very sad that the banks cannot invest in the right technology to save customers,” they said.

    Malam Danjuma Ibrahim, a ram seller at the Abakaliki cattle market who was the Ecobank to make a withdrawal, said that he had been on the queue for more than 30 minutes to withdraw cash for the Eid celebration.

    “Nigerian banks are frustrating the banking public as a result of network failures, shortage of cash experienced by the customers and inability to get your ATM card back immediately when seized by the machine.

    “The government is preaching cashless economy but has not put in place the right infrastructure to do it.

    ‘It is sad to experience difficulty in an apparent attempt to withdraw money these holidays,” he said.

    But in Enugu, customers expressed relative satisfaction and ease in the use of ATMs for withdrawing cash this Eld-el-Kabir holidays.

    NAN correspondent, who monitored commercial banks in Agbani Road, Zik Avenue, Okpara Avenue, Liberty-Abakpa and Uwani areas, observed that customers collected money with ease with few people on queues
at ATM points.

    Mr Obinna Onu, a resident of Achara Layout, said that he withdrew money in a new generation bank at Mayor Bus Stop within 12 minutes.

    “I have just spent about 12 minutes to make my withdrawal. It is
quite okay spending that little time. This shows some improvement,’’
Onu said.

    Mrs Amarachi Onyia, a trader at Ogbete Market, said that he withdrew
at Zenith Bank in Okpara Avenue by Holy Ghost without any queue and was paid clean naira bills by the machine.

    `Unlike other public holidays, I did not meet any queue in the seven
ATM points within the Zenith bank premises. It is so easy today, as
you can see,’’ Onyia said.

    A security man in one of the old generation banks in Liberty area of Abakpa, who simply identified himself as Kingsley, said that there was no rush or crowd like during previous holidays.

    He said that it was only on Thursday that the bank experienced lengthy
queue of about 25 customers, but “since Friday, fewer people visited
these four ATM points here.

    `As you can see the ATM points are virtually free. It was only
Thursday evening that we controlled people staying on the queue here, 
but as you can see once someone comes, he goes straight and gets his
money instantly,’’ he said.

    In Awka, customers decried the long queues at most ATM points.

    Mr Tokas Uzondu told NAN at Ecobank branch near Government House that the long queue was because the bank programmed the machine to dispense N5,000 per transaction.

    Another customer, Mr Anthony Ikem, said he was at the Access Bank branch at Regina Junction because of the massive crowd at Fidelity branch.

    He said he chose to use his bank to avoid being charged for interbank services.

    Other ATMs visited in banks at Awka were operational and seamless as at Monday.

    The consensus of customers is that CBN should compel commercial banks to put the state of the art technology in their branches to boost the Federal Government’s cashless policy

  • CBN Governor Emefiele in quiet 56th birthday celebration

    GODWIN Emefiele, the boss of the Central Bank of Nigeria, one of the nation’s most important establishments, is incredibly reclusive when it comes to social matters. It was his 56th birthday recently, but rather than the high drama and fanfare that usually accomplish the birthday celebrations of other men and women of his status, there was only a quiet celebration with family members and friends. So quiet, in fact, that the day came and went with many people caught unawares.

    As the country’s financial gatekeeper, the amiable beau of Margaret was said to have been wary of any noisy celebration at a time when the country’s political and economic situation remains precarious, hence he opted for a low key celebration with close friends and family members who only joined him in thanking God for seeing him through difficult times, while asking for strength to successfully navigate the tasks ahead.

  • NDE to empower 1,800 youths on active small scale entrepreneurship

    NDE to empower 1,800 youths on active small scale entrepreneurship

    The National Directorate of Employment (NDE) says it will empower 1,800 youths nationwide to engage in active business entrepreneurship.

    The Director General of NDE, Dr Nasiru Argungu, said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Sokoto, that the scheme tagged “50 under 30s’’, would stimulate businesses and ensure economic growth.

    Argungu said 50 youths would be selected from each of the 36 states to undergo training in different businesses.

    He added that at the end of the training, the participants would receive working tools and access to Central Bank of Nigeria and Bank of Industry for funding to set up businesses.

    The director general assured that the NDE would continue to serve as the bedrock of achieving government agenda in job creation and revival of the economy.

    He disclosed that the directorate has vast facilities and platforms to empower the youth with vital skills to be self reliant and contribute meaningfully to national economy.

    According to him, NDE has offices in 691 local government areas across the country with 74 skill acquisition training centres.

    He explained that the directorate has cut down on the occupational training offered at the centres from 80 to 10 in order to have more concentration and build expertise.

    According to him, the directorate is partnering relevant government agencies for effective execution of its mandate.

    He said that the NDE was being streamlined for efficiency and effectiveness.

    “Programmes of providing more employments are designed for targeted population through maximum usage of NDE structures strictly supervised by the headquarters.

    “The 30 years of NDE establishment has produced experienced workforce that needed to be encouraged for maximum effectiveness and training of younger ones that would sustain future challenges.

    “In this respect, the management has made it imperative to train and re-train NDE personnel to acquire appropriate skills, knowledge and right attitude to enhance productivity and efficiency to meet the special needs of the directorate’s operations,’’ the director general added.

    According to him, training is a critical incentive and motivation for employees, as it helps sharpen their skills for efficient performance.

    NAN reports that the NDE is holding a three-day retreat in Sokoto for its management staff.

    The retreat has as its theme: ‘Repositioning the NDE for Operational Excellence through Effective Leadership and Team Building.’

  • INEC deploys 450 personnel for Gombe parliamentary bye-election

    INEC deploys 450 personnel for Gombe parliamentary bye-election

    The Independent National Electoral Commission (INEC) said it had deployed 450 ad hoc staff in Gombe for Saturday’s House of Assembly bye-election in Dukku North constituency.

    The Resident Electoral Commissioner (REC) in the state, Alhaji Umar Ibrahim, made this known in Gombe on Friday while briefing the

    newsmen on preparations for the poll.

    The Dukku North seat in the assembly became vacant following the death of Malam Gambo Kabade, the member representing the constituency, about two months ago.

    Ibrahim said that the ad hoc staff had been trained and would work in the six wards of the constituency during the election.

    He said that accreditation and voting would commence simultaneously at 8 a.m. and that voters were free to stay back after casting their votes, for counting of the ballots.

    The REC said that sensitive material for the election sent from INEC headquarters in Abuja and kept at Central Bank of Nigeria, Gombe, would be taken to the constituency Friday evening.

    He stated that the commission had made adequate arrangement for security to ensure that peace and order prevailed during the exercise.

    According to him, in each of the pooling units, there will be a minimum of five security personnel.

    Ibrahim also said that the result would be announced at the constituency collation centre.