The Nation Newspaper

Tag: Central Bank of Nigeria

  • Jaiz balance with CBN hits N21.5b

    Jaiz balance with CBN hits N21.5b

    Jaiz Bank on Wednesday said that its cash and balance with the Central Bank of Nigeria (CBN) was N21.5billion.

    The money, according to the bank’s annual report and 2016 accounts that were presented to its investors in Abuja, in the year under review, hit N2.58billion cash the at hand, the current account of  N6.3billion and deposit of N12.6billion, totalling N21.5billion.

    It was an improvement over the previous year when the bank recorded total of N18billion cash and balance with the apex bank.

    In the year under review, the bank recorded N5.2billion assets, which was an increase from the N4.1billion in 2015.

    In terms of taxation, the bank noted posted a total of N77million, stressing that its balance brought forward was N43.8million, prior year tax adjustment N11.2million, and charge for the year N11.7million.
    The bank explained that it “operates the unrestricted type of Mudaraba Investment in which the Mudarib (the bank)is authorised by the providers of funds (Rabbul Mal) to invest their fund in the manner which the Mudarib deems appropriate.

    “Profits are shared as a common percentage rate rather than a fixed amount. The investments were jointly funded by the bank and the equity of investment account-holders. The account of N1.18billion paid by the bank to the Mudaraba account holders for 2016 financial year.”

    According to the report, the bank’s profit for the period under review was N343million in 2016 as it declined from N794million in 2015.

    The report said that the Central Bank of Nigeria (CBN) in collaboration with the Federal Government of Nigeria represented by the Federal Ministry of Agriculture and Water Resources (FMA&WR) established the Commercial Agricultural Credit Schemes (CACS).

    But during the year, it did not receive any amount for on-lending to customers as specified by the guidelines.

    The report said that financing granted under the scheme is for a seven year period at an interest rate of 9% per annum.

  • 2017 budget: Senate gives to NNPC, CBN, 36 others marching order

    2017 budget: Senate gives to NNPC, CBN, 36 others marching order

    The Senate Tuesday gave marching orders to the Nigeria National Petroleum Corporation, Central Bank of Nigeria, Federal Inland Revenue Service and 35 other Federal Government agencies to submit their 2017 budget proposals for approval or risk sanction.

    The upper chamber said that it was unbecoming that five months into the year, 38 statutory agencies of the Federal Government have failed to submit their budget proposal for the 2017 fiscal year.

    It said that the agencies continued to make huge extra budgetary expenditure against the law establishing them.

    Deputy Senate Leader, Senator Bala Ibn Na’Allah (Kebbi South) drew the attention of the Senate   to what he described as the abnormality of the agencies to submit their budgets for the approval of the National Assembly.

    Na’Allah noted it is wrong for agencies to spend money that has not been appropriated by the legislature.

    Na’Allah told the Senate that he intends to bring the issue to the floor as a motion so that Senators will understand the implications and the need to assist the government to fight corruption.

    He said, “I deliberately decided that I will bring it on the floor, so that Senators will understand the implications.

    “In our commitment to assist this government to fight corruption, we must stand on our feet that every spirit of our law must be obeyed by those holding public offices. I think that if you permit me I will like to come tomorrow by way of motion, so it can be debated on the Floor of the Senate.”

    “The only approach this Senate can take to assist this government in fighting corruption, is to insist that gross abuse of power and misuse of power must be stopped by every government agency. The only way we can build our institutions is to radically address the issue of abuse of power and misuse of power. I think that if you give me permission, I will like to bring it tomorrow as a motion.”

    Senate President, Dr. Abubakar Bukola Saraki, who agreed with the submission of Na’Allah expressed displeasure over the failure by most government agencies to submit their 2017 budget proposals to the National Assembly for consideration and approval.

    Saraki condemned the practice where agencies of government spend money without statutory approval by the National Assembly.

    He ruled that the Senate would comprehensively debate the issue and take a resolution today.

    Saraki said: “We are already in May.  How can parastatals be operating without any budget, especially in this time of the fight against corruption and ensuring that there is transparency in governance? We need to take this matter seriously because clearly these agencies are just flouting the guidelines and breaking the law.

    “This is a very serious issue because as we all know, in line with the Fiscal Responsibility Act, these budgets are meant to have been submitted to the National Assembly since August 2016.

    “They are supposed to have come with the Appropriation document. We have now passed the 2017 budget without the budgets of the parastatals. I think this matter really needs to come up as a motion because this is a very serious matter. We need to debate it.

    “Leader, this is a very important issue and we must debate it tomorrow and if there is any Committee in exception or that have received from agencies they oversight, then they will have the opportunity to at least clear the parastatals and Agencies, that have sent their budgets.

    “But if as at middle of May, we are saying we have not received any budget from them, then which money are they spending and with what authority? We need to look into that and take a decision that may be they can only pay salaries until they bring their budgets here and approvals given.

    “I think once and for all, we need to address this issue and put an end to this disregard for laws and areas of corrupt practices,” the Senate President said.

    Agencies that are supposed to submit their budget proposals for approval by the National Assembly included NNPC, CBN, Bureau of Public Enterprises (BPE), National Agency for Science and Engineering Infrastructure (NASEI), Nigerian Airspace Management Agency (NAMA).

    Others are the Nigerian Shippers’ Council (NSC), National Maritime Authority (NMA), Raw Materials Research and Development Council (RMRDC), National Sugar Development Council (NSDC), Nigerian Postal Service (NPS), Nigerian Ports Authority (NPA), Federal Airport Authority of Nigeria (FAAN).

    The list also includes the Securities and Exchange Commission (SEC), Nigerian Tourism Development Corporation (NTDC), National Communications Commission (NCC), National Agency for Food and Drugs Administration and Control (NAFDAC), Nigerian Customs Service (NCS) and National Broadcasting Commission (NBC).

    Others are National Insurance Commission (NIC), News Agency of Nigeria (NAN), Nigerian Copyrights Commission (NCC), Nigerian Deposit Insurance Corporation (NDIC), Nigerian Civil Aviation Authority (NCAA), Federal Inland Revenue Service (FIRS), Nigerian Immigration Service (NIS), Nigerian Electricity Regulatory Commission (NERC), Radio Nigeria, Federal Housing Authority (FHA), Nigerian Television Authority (NTA), National Automotive Design and Development Council (NADDC), Nigerian Nuclear Regulatory Authority (NNRA), National Business and Technical Examination Board (NABTEB), Federal Mortgage Bank, National Environmental Standards and Regulations Enforcement Agency (NESREA), Industrial Training Fund (ITF), Corporate Affairs Commission (CAC), Standards Organisation of Nigeria (SON), as well as Oil and Gas Free Zone Authority (OGZFA)

     

  • Ghost workers: Sokoto recovers N278m from LG payrolls – Tambuwal

    Ghost workers: Sokoto recovers N278m from LG payrolls – Tambuwal

    Sokoto State Government says it has recovered over N278 million paid to ghost workers on the payrolls of local governments in the past four months.

    Gov. Aminu Tambuwal disclosed this on Sunday during a stakeholders’ meeting of the All Progressives Congress (APC) held in Gwadabawa Local Government Area.

    Tambuwal said the money was paid to the ghost workers’ bank accounts but was not claimed from the various banks.

    “This was sequel to the centralisation of the payment of the salaries of workers of the local governments.

    “About two weeks ago, some banks alerted the Commissioner of Local Governments about the existence of the unclaimed money,” the governor said.

    He said the recent verification of council staff was aimed at ascertaining genuine workers.

    “The exercise was not aimed at witch hunting anyone but to ascertain the actual workforce and monthly wage bill of the local governments,” Tambuwal said.

    He said many farmers in the state were defaulting in repayment of agricultural loans obtained from commercial banks and assured the banks of the government’s support in recovering the money.

    “The money belongs to the Central Bank of Nigeria and we will support any action to recover it.

    “This is to enable other farmers to benefit from the gesture as the money is not a bonanza.’’

    Tambuwal called on the people to continue to pray for President Muhammadu Buhari as well as for sustained peace and unity of Nigeria.

    Also speaking, Sen. Ibrahim Gobir (APC-Sokoto) and Speaker, Sokoto State House of Assembly, Alhaji Salihu Maidaji, called on party members to obtain their permanent voter cards.

  • Electronic fraud: CBN reiterates need to secure payment systems

    Electronic fraud: CBN reiterates need to secure payment systems

    The Central Bank of Nigeria (CBN) on Wednesday reiterated the need to secure payment systems in the country stem fraudulent activities in the financial sector.

    The Director, Banking and Payment Department, CBN, Mr Dipo Fatokun stated this while presenting a keynote address on emerging regulations to protect online, mobile and payment services in Abuja.

    The workshop, organised by Maxut Consulting Experts and Vasco Data Security in collaboration with the CBN was centered on the emerging trends in banking and payment systems and regulatory and security implications.

    Fatokun said there was the need for continuous effort by stakeholders to develop efficient, reliable and electronic payment systems in the country.

    According to him, one of the key tasks of the CBN is to promote the smooth operations of an efficient payment system, which is core to the financial stability of any country.

    He said payment systems had important implications for monetary policy implementation and efficiency of the economy.

    “To achieve broad objectives of the Payments System, CBN develops and regulates the implementation of regulation to facilitate the growth of initiatives that will harmonise payment operations in the country.

    “In its regulatory role, the CBN is careful to approach the dynamic of payment systems policy creation as a delicate balance in order not to stifle innovation and growth in the payment systems.

    “In addition, the bank has developed a financial inclusion strategy, the PSV 2020 Vision and cash-less policy drive with specific targets and timelines.

    “The sustenance of these initiatives will ensure that financial services are provided at affordable costs to sections of disadvantaged and low-income segments of the society.’’

    Fatokun explained that because of the emergence of new technologies, there was a continuous need to update payments system regulation as a result of its dynamic and ever changing nature.

    “Technological developments have led to disruptive innovations by financial Technology (FinTech) companies in the financial system.

    “These innovations have facilitated the expansion of electronic payments and helped in providing financial services to previously unreached groups.’’

    He said the CBN had tried to incorporate all service providers into the regulatory space but some preferred to remain in the unregulated space due to perceived difficulties of licensing and regulation.

    He further said that the participation of the apex bank in the workshop would enhance the knowledge of staff on the operations of non-financial service providers in the payments system.

    Fatokun urged banks in the country to ensure standardisation in all transactions while making available their Application Programming Interphase (API).

    API is a set of functions and procedures that allows access to data or a service in order to provide greater functionality to the application user.

    He said banks had been directed to make their APIs available to FinTechs but Nigerian banks would fully implement this when implications of its availability was fully understood.

    Earlier, Mr Micheal Odusami, the President, Maxut Consulting said the workshop would ensure the apex bank was abreast with the current trends and future of the industry.

    Odusami said the workshop would also expose the country to what was obtainable from different parts of the World in the sector as some countries were a little more advanced than us.

    “They are already putting regulations in place to address some banking issues and sharing them here will see how some of the stuff we are already doing will help us.

    On the level of online security risk in the country, Odusami said a lot of the challenges faced was around social engineering, people impersonating other people and so on.

    He said that majority of the fraud recorded within the country was carried out by people inside the system itself, “people that know how the system works and they compromise it’’.

    He commended efforts by the CBN toward ensuring the mitigation of fraud in the banking sector but added that a lot still needed to be done to secure transactions in the sector.

  • NSE market capitalization grows by N117 bn in one day

    The nation’s equity market on Tuesday maintained a bullish trend for the eighth consecutive day with the indices appreciating by 1.28 per cent and the volume by 101.48 per cent.

    The News Agency of Nigeria (NAN) reports that the market capitalization increased by N117 billion or 1.28 per cent to close at N9.249 trillion against N9.132 trillion on Monday.

    Also, the All-Share Index which opened at 26,418.33 rose by 337.88 points or 1.28 per cent to close at 26,756.21 due to huge gains posted by some highly capitalised stocks.

    A breakdown of the price movement chart indicated that Dangote Cement led the gainers’ table, gaining N2.50 to close at N162 per share.

    Nigerian Breweries followed with a gain of N2 to close at N132 and Oando increased by 80k to close at N8.69 per share.

    Okomuoil gained 72k to close at N48.52, while PZ Industries appreciated by 70k to close at N15.70 per share.

    Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , attributed the growth to investors and traders renewed confidence to impressive earnings of first quarter of 2017 released by some companies.

    Omordion stated that the current uptrend was the longest streak since the beginning of the year.

    He added that investors were taking advantage of low valuation of equities to reposition and increase their stake in the market.

    Omordion said that the Central Bank of Nigeria (CBN) new foreign exchange policy contributed to the market trend.

    On the other hand, Total topped the losers’ chart, dropping by N6 to close at N249 per share.

    7UP Bottling Company trailed with a loss of N1.89 to close at N102 and Lafarge Africa dipped N1.10 to close at N48.50 per share.

    Dangote Sugar declined by 24k to close at N6.46, while Presco shed 10k to close at N46.90 per share.

    NAN also reports that FCMB Group drove the activity chart, accounting for 243.86 million shares valued at N239.40 million.

    Zenith International Bank followed with 52.29 million shares worth N856.16 million, while United Bank for Africa traded 42.53 million shares valued at N274.51 million.

    Diamond Bank sold 33.94 million shares worth N29.02 million and FBN Holdings exchanged 22.81 million shares valued at N81.35 million.

    In all, a total of 539.23 million shares worth N2.82 billion were transacted by investors in 4,519 deals, representing an increase of 101.48 per cent.

    This was in contrast with a turnover of 267.64 million valued at N3.26 billion traded in 3,907 deals.

     

  •  Economist wants CBN to pump money into circulation

    An Economist, Dr Tunde Adeoye, has advised the Central Bank of Nigeria (CBN) to pump more funds into the economy in order to pull the nation out of current recession.

    Adeoye, who is a Senior Lecturer, Department of Economics, University of Lagos, told the News Agency of Nigeria (NAN) in Ota, Ogun on Wednesday that the apex bank should also regulate interest rate.

    He was reacting to the comments by the CBN Governor, Mr Godwin Emefiele, who said on Tuesday that the nation would be out of recession by the third quarter of the year.

    Emefiele had said that the nation had more than $31 billion in its external reserve, which was enough to defend the Naira and bring down the prices of goods.

    Adeoye noted that the prices of goods have gone up due to slow economic activities in the country.

    He added that the nation’s external reserves depended on the price of oil in the international market, as such “Nigeria should not rely on rise in oil prices to get out of recession because the country does not have control over the prices.

    “Instead, the nation should look for long lasting solutions by pumping more money into circulation and regulating the interest rate.”

    According to him, when there is more money in circulation, it will make funds available in the system and people will have access to them.

    “This will boost economic activities and bring down the inflation rate.’’

  • Economist urges CBN to pump money into the circulations

    An Economist, Dr Tunde Adeoye, has advised the Central Bank of Nigeria (CBN) to pump more funds into the economy in order to pull the nation out of current recession.

    Adeoye, who is a Senior Lecturer, Department of Economics, University of Lagos, told the News Agency of Nigeria (NAN) in Ota, Ogun on Wednesday that the apex bank should also regulate interest rate.

    He was reacting to the comments by the CBN Governor, Mr Godwin Emefiele, who said on Tuesday that the nation would be out of recession by the third quarter of the year.

    Emefiele had said that the nation had more than $31 billion in its external reserve, which was enough to defend the Naira and bring down the prices of goods.

    Adeoye noted that the prices of goods have gone up due to slow economic activities in the country.

    He added that the nation’s external reserves depended on the price of oil in the international market, as such “Nigeria should not rely on rise in oil prices to get out of recession because the country does not have control over the prices.

    “Instead, the nation should look for  long lasting solutions by pumping more money into circulation and regulating the interest rate.”

    According to him, when there is more money in circulation, it will make funds available in the system and people will have access to them.

    “This will boost economic activities and bring down the inflation rate.’’

  • Cashless Policy: CBN suspends charges on large withdrawals

    Cashless Policy: CBN suspends charges on large withdrawals

    The Central Bank of Nigeria (CBN) has directed Deposit Money Banks to suspend charges on over-the-counter or ATM withdrawals of above N500,000 or deposit of same amount.

    The apex bank’s Director, Banking and Payments System Department, Mr Dipo Fatokun, in a circular dated April 20, 2017, said all the charges introduced in February, and meant to take effect from April 1, 2017, have been dropped.

    “For further clarification, the existing policy prior to the announcement of the new policy as earlier implemented in Lagos, Ogun, Kano, Abia, Anambra, Rivers states and the FCT shall remain.

    “For the avoidance of doubt, the old charges to be reverted to are as follows: Individual charges on withdrawals or lodgment limit is now three per cent.

    “Corporate accounts will be charged five per cent for withdrawal or lodgment of over N3 million cash.

    “Henceforth, nothing will be charged as processing fees for lodgments,” he said.

    Fatokun directed banks to make all necessary refunds to customers with immediate effect.

    The News Agency of Nigeria (NAN) recalls that the CBN in February announced its plan to extend the Cashless Policy to all the remaining states of the Federation by Oct. 1, 2017, to enhance the efficiency of payment systems.

    This policy, which received a lot of backlash from market analysts, was to commence in phases within the country with effect from April 1, 2017.

    The policy introduced charges on the cumulative cash withdrawals or deposits per customer per day, irrespective of the channels used either over-the-counter or ATM.

    The charges for individuals was two per cent for withdrawals above N500,000 to N5 million, 1.5 per cent on deposits for N500,000 to N1 million, and three per cent on deposits above N1 million to N5 million.

    Also, individual withdrawals above N5 million was to incur a 7.5 per cent charge.

    Similarly, corporate accounts were also to incur a charge of two per cent on withdrawals ranging from N3 million to N10 million, while withdrawals of that amount would be at a five per cent charge.

    Over-the-counter deposit of above N10 million to N40 million was to attract a three per cent charge and 7.5 per cent on withdrawals, while above N40 million attracts five per cent on deposits and 10 per cent on withdrawals.

    However, the policy exempted Revenue-Generating Accounts of the Federal, State and Local Governments, Ministries, Departments and Agencies of Government from cash deposit charge.

    Also, accounts of Embassies, Diplomatic Missions, Multilateral, Aid Donor Agencies in Nigeria, Microfinance banks and Primary Mortgage Institutions were exempted from the cash deposit and withdrawal charges

  • CBN pumps $100m into forex market

    CBN pumps $100m into forex market

    The Central Bank of Nigeria, CBN has pumped a total $380million within two days into the Foreign Exchange Market. And the effect: a further strengthening of the Naira.

    The first tranche of $280m was released on Tuesday, On Wednesday, the bank offered additional $100 million to authorised dealers to meet the 7 to 15-day forwards requests of customers.

    Okorafor attributed the inability of the authorised dealers to fully subscribe to the CBN to a surfeit of forex in the system, which may lead to further appreciation of the naira.

    According to him, the trend monitored by the Bank indicated that deposit money banks were now able to meet the forex demands of their customers within the time frame stipulated by the CBN.

    He said that the CBN will on Thursday, continue its sale of 20,000 dollars to Bureaux de Change (BDCs) for onward sale to small-end users.

    Okorafor said feedback on the Bank’s forex new window for Small and Medium Enterprises (SMEs) in the country revealed that majority of small importers were heading for a major boost in their activities.

    This he said was responsible for the current appreciation of the Naira, stressing that the Naira will continue to gain strength with the relentless efforts of the CBN to to supply the market with forex.

    The spokesman also reiterated the determination of the CBN to continue to intervene in the various sectors of the interbank forex market in order to guarantee access to all categories of customers requiring forex for legitimate obligations.

    The News Agency of Nigeria reports that the Naira on Wednesday closed at N390 at the parallel market and N306 to a dollar at the interbank market on Wednesday.

    Meanwhile the World Bank has applauded the strategy of the CBN to increase sales of foreign exchange to the interbank market, Bureau de Change as well as other segments.

    It however, stressed the need for the CBN to ease restrictions on access to foreign exchange, which continues to hinder rigorous economic recovery in the country.

  • CBN vows to sustain forex liquidity

    CBN vows to sustain forex liquidity

    The Central Bank of Nigeria (CBN) has vowed to sustain liquidity in the foreign exchange market with the injection of $280 million into various sectors of the market.

    The CBN has also commenced its weekly $20,000 sale to licensed Bureaux de Change (BDCs) and further announced the opening of bids for offering $100m wholesale 7-45 days forwards through the Deposit Money Banks (DMBs).

    A statement from the CBN on Tuesday gave a breakdown of the intervention indicating that “invisible such as Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80 million, while the Small and Medium Enterprises (SMEs) window received $100 million. Together with the wholesale bid auction, the CBN, on Tuesday, sold $280 million into the market.”

    The Bank’s spokesman, Isaac Okorafor, confirmed the releases, disclosing that the new window for SMEs would no doubt boost the business of SMEs through the importation of eligible finished and semi-finished items, thereby boosting FOREX supply to the retail business segment of the market.

    Okorafor further explained that “the CBN introduced the use of FORM Q for the SMEs, which requires just basic documentation, to ease their documentation challenges usually encountered by this category of businesses. He reiterated that SMEs are allowed to purchase $20,000 per quarter on this arrangement.”

    He restated that the new form, which must be completed by all SME applicants, “requires the applicant to fill the form with a supporting application letter as well as beneficiary invoice and bank wire transfer.”

    According to him, eligible applicants must have operated their bank accounts for a minimum of six months.

    On the sale of forex to BDCs, the Bank said the decision was taken to ensure that the high volume demand by low-end users are met promptly.

    While urging market participants to abide by the rules to ensure the preservation of our external reserves, stability of our financial system, and growth of our economy to the benefit of all Nigerians, the Bank’s spokesman warned that “the CBN would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their staff