The Nation Newspaper

Tag: transactions

  • CBN to banks: Don’t take fees on transactions you initiate

    The Central Bank of Nigeria (CBN) has directed commercial banks not to charge fees on transactions initiated by them.

    Speaking at the Meet The Executive forum, organised by Finance Correspondents Association of Nigeria (FICAN) in Lagos, CBN Director, Banking & Payment Systems Department, ‘Dipo Fatokun, said bank-induced transactions should not be charged on customers’ accounts.

    The CBN also directed the banks to resolve disputes arising from use of Unstructured Supplementary Service Data (USSD) channel within three days.

    Fatokun said such resolution would help build more confidence in the payment system and bring more people into the financial services net.

    He said some provisions of the regulatory framework for USSD, such as the authentication measures for transactions, International Mobile Subscriber Identity (IMSI), Date of SIM Swap, Date of Device change, International Mobile Equipment Identity (IMEI), among others, were to make the channel more effective.

    Represented by the Assistant Director, Banking & Payments System Department, Taiwo Oladimeji, he said maximum USSD transaction limit remained N100,000 per customer per day, adding that any amount above that requires the customer to execute indemnity at the bank.

    Speaking on: Half-Year Review of Developments in the E-Payment Industry and Customer Protection, Fatokun said: “USSD transactions above N20,000 require two-factor authentication (2FA). No USSD financial service should be activated for customer unless the deactivation mechanism is put in place with effect from October, 2018. In addition, the CBN is currently working to properly structure and formalise the sandbox arrangement in Nigeria by collaborating with some infrastructure providers like the Nigeria Interbank Settlement System (NIBSS) to interact with FinTechs.”

    Fatokun said the financial system was undergoing transformation through technology, adding that it was not only peculiar to the financial services sector, but all sectors of human endeavours.

    “We are seeing new operators with technology savvy, more efficient models, and collaborations among new entrants as well as established participants in payments systems in ways that exhibit regulatory challenges. To meet up with the challenges, some countries have adopted regulatory sandbox approach which is not totally novel to the CBN. We are however working to properly structure and formalise the sandbox arrangement in Nigeria by collaborating with some infrastructure providers to interact with FinTechs,” he said.

    He said a well-functioning National Payments System (NPS) was crucial to the financial sector development as it increases confidence in the financial sector by ensuring a credible, reliable and efficient payment system. He said in recent years, the payment landscape has experienced a lot of innovation, bursting with enterprise and reaching the unbanked and undeserved.

    Speaking further, he said consumer protection involved a whole range of laws, policies, structures, actions and behaviours designed to protect consumers from the abuse and exploitation of service providers.

    “Consumer protection is critical in improving access and usage of financial products and services;  ensures that increase access and usage of financial services, translate into benefits for the economy and individuals; helps protect consumers from probable market abuse and exploitation; helps con-sumers benefit from well informed decisions; helps consumers appreciate how best to use and manage financial products and services,” he said.

     

  • Afrexim invests $16b in Nigeria to support difficult transactions

    Afrexim invests $16b in Nigeria to support difficult transactions

    African Export-Import Bank (Afreximbank) says its has invested over $16 billion in Nigeria to supported difficult and inpactful transactions.

    In addition, the bank, disclosed that it has taken an investment decision in collaboration with the Nigerian government to deepen its investment portfolio in the country by building ultra modern healthcare hospital to be located either in Abuja or Lagos.

    This disclosure was made by Dr. Benedict Oramah, President and Chairman of the Board of Directors of AFREXIMBank at a press briefing in Abuja yesterday.

    Oramah stated that the Ultra modern multi- dollar tertiary level hospital will be a joint partnership investment between the bank, Nigeria’s Federal Ministry of Health and the Kings College Hospital (KCH), London.

    The Afreximbank president said the cost for the Hospital can’t be fixed for now because it will be a turn key project which cost will be determined after a contractor is engaged and some initial logistics addressed after discussions between parties involved.

    According to him, Nigeria remains a very important shareholder of Afreximbank and also the highest beneficiary of its funds. “We are doing this project with Kings College Hospital, London. The idea behind this project is to be able to treat complex diseases, reduce money spent on medical tourism overseas, create room for capacity building for health workers like doctors and nurses.”

  • FMDQ securities recorded N20. 99trn transactions in two months – report

    FMDQ securities recorded N20. 99trn transactions in two months – report

    The FMDQ OTC Securities Exchange recorded N22. 99 trillion worth of transactions in fixed income and currency markets in the first two months of 2017.

    Market Turnover Report from the company obtained by the News Agency of Nigeria (NAN) in Lagos on Monday indicated that the value was against N13.92 trillion recorded in the corresponding period in 2016.

    A breakdown of the new report showed that transactions in Treasury Bills (TBs) contributed the highest of N11.60 trillion to the turnover.

    It was trailed by repurchase agreements/buy-backs which accounted for N5.22 trillion worth of transactions, while foreign exchange derivatives had N2.43 trillion worth.

    The Federal Government bonds had N2.35 trillion worth, while foreign exchange recorded N1.19 trillion worth.

    NAN also reports that 10 leading member banks dominated activities in the FMDQ market during the period with Ecobank Nigeria leading the pack.

    Access Bank came second on the activity chart and was followed by UBA, Stanbic IBTC, First Bank, FBN Merchant Bank and Standard Chartered Bank.

    Others are Union Bank, Diamond Bank and Guaranty Trust Bank, respectively.

    The report said that the top 10 dealing member banks accounted for 70.97 per cent of the transactions amounting to 16.31 trillion of the overall turnover.

    Ecobank Nigeria, Access Bank and UBA maintained their positions for the second month running as leaders in   OTC market, ranking first, second and third, respectively.

  • Remita processes $30b transactions yearly, says SystemSpecs

    SystemSpecs Executive Director Deremi Atanda has said that Remita, the technology driving the Treasury Single Account (TSA), processes over $30 billion transactions yearly within Nigeria alone.

    He spoke at the Gulf International Technology Exhibition (GITEX) in Dubai.

    Remita is the e-payments and e-collections solution platform developed by SystemSpecs Limited and used by Federal Government agencies for the TSA.

    “There’s also a roadmap to take Remita to Africa. So if you have a vision to be part of revolutionising payments in Africa at whatever level, driving financial inclusion at the national level, savings, micro-savings and micro-transactions, Remita is best placed to help you achieve that,” Atanda said.

    He explained that Remita is also at the forefront of driving the national financial inclusion policy, and is currently used by about 500 micro-finance banks to meet the needs of many Nigerians who lack access to commercial banking services, empowering them to extend financial services to unbanked Nigerians.

    SystemSpecs Limited, one of Nigeria’s leading software development and solutions companies, won the award for its use of Remita “as a tool of national and economic development”.

    The “leadership in technology” award was conferred on the company in Scotland on the April 22, hosted by the Africa Forum Scotland, according to a statement from the company.

    Beside the award in Scotland, John Obaro, SystemSpecs managing director, was also recognised as the software personality of the year at the Nigeria communications week’s Beacon of Information and Communications Technology (BoICT) Awards in Lagos on April 23.

    Speaking about the awards Obaro said: “We dedicate these awards to all the hardworking Nigerians that roll up their sleeves every day to devise innovative, home-grown solutions to the various challenges facing us as a nation, thereby contributing their respective quotas in making Nigeria great again in the ever watchful eye of the global community”.

  • Banks set limits on PoS, online transactions abroad

    Banks set limits on PoS, online transactions abroad

    Banks have set limits on overseas Point of Sale (PoS) and online card transactions, The Nation has learnt.

    Many of the lenders, which are battling a tough dollar scarcity, have pegged monthly transactions on PoS and online transactions using cards at $100, British Pounds Sterling 90, Euro 130 and Canadian Dollars 360.

    The ban on cash withdrawals with Automated Teller Machine (ATM) cards while abroad still stands. Travellers are now finding it difficult to pay their hotel bills, make reservations and other transactions using their debit cards after the policy took effect.

    Industry sources said had the lenders not restricted the use of ATM cards abroad, some of them would have been facing hitches meeting the dollar demands of their overseas’ customers. Such would have exposed the lenders to huge liabilities’ shocks and operational challenges as dollar scarcity persists.

    Stanbic IBTC Bank, United Bank for Africa, Access Bank, Stanbic IBTC Bank, Standard Chartered Bank Nigeria (StanChart) and GTBank last week announced the suspension of their overseas ATM card services. Also suspended by the banks were all foreign currency-denominated transactions, including those conducted on PoS machines and online.

    But in a move to ease the pains of customers, some of the lenders are now allowing transactions on PoS and online deals, under a marginally set limit.

    In an emailed note to customers, GTBank said it had reviewed international spending limit on ATM cards downwards but restricted such transactions to cards used on PoS and online transactions.

    As a way out of the crisis, banks are now encouraging travellers to open dollar accounts, which have no spending limit. Such cards are issued by the banks on domiciliary accounts funded directly by customers, but the ongoing dollar scarcity and pains of sourcing the greenback makes funding such accounts a herculean task and at cut-throat rates.

    The naira closed last week at 310 to dollar in the official market and 450 to dollar in the parallel market.

    Chief Economist at Renaissance Capital (RenCap) Charles Robertson, predicted that the naira would end the year at N390 to dollar in the official market, even though it has become undervalued, according to the Forex rate implied by this economist’s 13-year average real effective exchange rate (REER) of N286/ to dollar.

    RenCap is a leading frontier market research and investment firm, based in many countries, including Nigeria.

    “We expect the interbank forex rate to fall further, despite the naira being undervalued, partly due to low market confidence. The widening gap between the parallel forex rate of N450 to dollar and the interbank rate of N310 to dollar implies the market thinks the interbank rate should be lower. However, we do not think the ‘market-clearing rate’ is as low as the parallel rate suggests, because that market is illiquid,” he said.

    “Moreover, the improvement in the current account (CA) to a surplus of 0.3 per cent of Gross Domestic Product (GDP) in June this year against a deficit of 1.6 per cent in June last year, on our estimates, suggests the fall in the parallel forex rate may be overdone. We see the authorities succumbing to mounting pressure – possibly as soon as the November 22 meeting of the Monetary Policy Committee (MPC) – and moving towards a transparent, liquidity-enhancing forex market. Until then, we expect the policy rate to be flat at 14 per cent,” Robertson said in an emailed report.

    Naira forwards have soared to records, suggesting foreign investors see another devaluation coming. Contracts maturing in six months trade at N384 per dollar, their highest-ever level. Those due in a year have climbed to N422 from N325 since the end of June. The naira’s spot price climbed 1.7 per cent to about N310 to dollar.

    The Central Bank of Nigeria (CBN) started tightening capital controls in late 2014 to defend the naira as crashing crude prices crimped export revenues. It then imposed a 16-month peg of N197 to N199 per dollar from February 2015 until June 20 when the flexible foreign exchange policy was unveiled to allow naira float freely in the market.

  • Lagos earns N8b from land transactions

    The Lagos State government yesterday said it generated N8, 114,191, 292.35 as Internally Generated Revenue (IGR)  from land transactions between  May last year and March this year.

    The Permanent Secretary, Lands Bureau, Mr. Bode Agoro who spoke at the ongoing ministerial press briefing in Alausa, Ikeja, in commemoration of the first year anniversary of Governor Akinwunmi Ambode in office, said the feat was achieved through ingenuity.

    He said the Bureau was able to rake in the revenue through the ingenuity introduced by the present administration which has devised means of blocking leakages in the financial system of the bureau.

    According to Agoro, to actualise the vision and underscore its desire for a truly citizen-centred government, while considering the importance of land as a precious God-given resource, the bureau maximised the potentials of the state land resource and provided easy access to it for economic and social benefits of Lagos residents.

    “We are resolved and committed to improve our ways of doing things, but more importantly, we pledge to infuse more transparency, accountability and integrity, individually and collectively, into land administration in the state.

    “We assure the business community and corporate Lagos that the ease of doing business in the state will be improved upon.

    “We are proud to inform you that our indefatigable and technology driven governor has approved the development of the Integrated Land Administration and Automation System which provides for a fully integrated end to end land administration platform for sustainable and automated land administration environment among others,” he said.

    Agoro who frowned at the menace of land grabbers, popularly called Omo-onile, said to fast-track the prosecution of any offender of the law relating to land grabbing, the state the judiciary has been fully equipped to deliver prompt judgment in accordance with the Section 52 and 53 of the criminal law of Lagos.

  • CBN pegs mobile money monthly transactions at N40b

    CBN pegs mobile money monthly transactions at N40b

    The Central Bank of Nigeria (CBN) has pegged monthly value of mobile money transactions at N40 billion.

    CBN Deputy Governor, Operations, Suleiman Barau, who disclosed it at the maiden edition of the Electronic Payment Financial Incentives Scheme (EFIS) Efficiency Award, said mobile money is where the future of banking lies.

    He urged banks and other stakeholders to ensure that the e-payment space is deepen.

    Barau said the EPIS award would create healthy competition among banks and add more value to customer.

    He said the mergence of Guaranty Trust Bank Plc (GTbank) as the overall winner is a welcome development that should stimulate healthy competition in the industry.

    He also commended the performance of Zenith Bank Plc adding that both lenders have done exceptionally well in the e-payment space.

    GTBank won six out of the 11 bank category of the award, which include Cashless Instant Payment; Cashless PoS issued cards; Instant Payment Transaction Efficiency; Electronic Reference; Automated Direct Debit Mandate; and Customer Experience Satisfaction award.

    Zenith Bank won in the Cashless Bulk Payment Award and PoS Transaction Acquirer categories. FirstBank, Standard Chartered Bank and Diamond Bank won in other categories.

    Barau said that the award was designed to address apathy to electronic payment channels, which greeted the cash-less policy.

    He said: “In 2012 when the cashless policy was introduced, basically to reduce the cash intensity in the economy, and by implication to encourage electronic payments, with a lot of e-channels to drive the policy, these include PoS, multifunctional ATMs, internet banking, NIBSS electronic funds transfer (NEF), NIBSS Instant Payment (NIP) that I am very proud about, mobile payments, and others.

    He said the level of merchant apathy was high thereby inhibiting adoption.

    Managing Director/Chief Executive, NIBSS, Adebisi Shonubi said  the award would create efficient payment in the industry.

    He urged banks to work harder to enhance the efficiency of the payment system, adding that banks and other participants in the payment space that do well will always be recognised.

    He said NIBSS has continued to provide the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks, discount houses and card companies in the country.

    “I am not sure you will find so many customers complaining about e-payment. So, there are different levels of dissatisfaction and from the e-payment perspectives, there should not be much. In the payment space I will be very surprised that customers are complaining,’’ he said.

    He insisted that the fees NIBSS takes from banks were within the stipulated regulated threshold, adding that such fees do not determine the fees charged by banks on their customers’ accounts.

  • #NoBankingDay: Group calls for boycott of transactions on March 1

    #NoBankingDay: Group calls for boycott of transactions on March 1

    A coalition of consumer protection groups is set to rally customers against banks over excessive charges.

    The group,  at a briefing in Lagos, fixed Tuesday, March 1, as a #NoBankingDay, urging bank customers not to visit any banking hall, or use their ATM cards, or log in to any online banking platform, transfer any money through their phones, tablets, or laptops, or make any POS or online payments or issue or present any cheque on that day.

    The coalition, under the aegis of Nigerian Consumer Protection Associations (CONCA), consisting of Consumer Advocacy Foundation of Nigeria (CAFON), Market Ombudsman, Consumer Empowerment Association of Nigeria (CEON), Consumer Rights Project (CRP), National Association of Telecommunication Subscribers (NATCOMMS) and United Consumers Association of Nigeria (UCAN), among others, urged customers  to heed the call and protest against unsatisfactory services, transactions and contractual terms.

    According to the President of CAFON, Mrs. Sola Salako, March 1, has been set aside as a day banking customers should avoid transactions as a way ot ptotesting against excessive charges and other negligent activities od bank.

    She said despite the CBN rules, abolished fees were being reintroduced, hence the need for total reversal of the multiple charges in the banks.

    “ATM withdrawals that were free 2 years ago, now cost N65 on third withdrawals (many banks even start charging from the first withdrawal!). We pay N1000 for debit card issuance and renewals (this has just been increased by between N200-500 by some banks without any form of notice though it is free in many countries),” she said.

    On the ATM management charges of N100 by the banks at the end of the year, she stated further consumers really want to know how banks ‘maintain’ debit cards already issued to them which they had already been charged N1000 when issued.

    “Then there is an Annual Debit Card Maintenance Fee N100. Even consumers who did not request for, or have never collected debit cards from some banks, are charged all these fees. On services they never used?” she stated.

    On online transfer charges, she said consumers pay N105 for every online transfer yet those same transactions were subjected to COT up until January 2016. “Just when we were going to start enjoying zero fees on current accounts, CBN reintroduces COT under a new guise as Monthly Account Maintenance Charge of N1/mille. This charge was levied by default on ALL consumers without the chance to negotiate according to CBN directive. Why must consumers pay double charges on every transaction? Contrary to global understanding of the fact that a Savings Account is usually a no-fee account, banks in Nigeria now deduct various fees from consumer savings accounts!  How will consumers be encouraged to save money with the banks?,” she said.

    On the Stamp Duty charges, she said: “A new Stamp Duty charge of N50 on every credit of over N1000 has just been introduced. While we recognis e the need for the FG to raise IGR in view of the current economic realities of our nation, there are legal issues on the validity of the levy. On our part, we question the fairness of a flat levy of N50 on deposits of N1000 or more. A student who receives an allowance of N2000 pays the same amount as a rich man who receives a deposit of N10m! So the student is technically paying more taxes than the rich man. That is inequitable and unfair thus requires an immediate review.”

    “We have endured excessive charges, unexplainable fees and unfair contracts that only protect the banks but do not protect the consumers. Banks debit consumers’ accounts at will for charges we never agreed to or were not aware of; they charge us for EVERYTHING; we pay to get our statements; introduction letters; debit cards, and now, some banks are charging N210 for the use of deposit and transfer forms in their branches!” said Salako.

  • Travelex eases forex transactions

    Travelex, a global leader in foreign currency (forex) operations, has recorded yet another milestone in its efforts to provide customers quality currency services all the time.

    With  successful business partnership arrangement between the company and UAE Exchange Group (a global, technology-driven money transfer firm spread across over 30 countries in the world), Travelex is promising its Nigerian customers a more robust and seamless foreign exchange transaction regime.

    To underscore the importance the two companies attach to smooth financial operations in the country and economic growth, CEO of Travelex Worldwide and UAE Exchange Group, Anthony Wagerman and Promoth Monghat, respectively are billed to arrive the country soon to further strengthen Travelex’s operations, and open new investment windows in Nigeria.

    Travelex has maintained strong commitment to the economic growth of Nigeria, playing a leading role in forex services and management in the over 35 years of its operation in the country, formerly as Thomas Cook.

    UAE Exchange Group on the other hand has enormous investment in compliance technology solutions that help provide real-time alerts for financial transactions including money laundering and fraud detection. The Group’s turnover as at 2014 stood at $53 billion.

    Travelex Nigeria working with UAE Exchange promises customers in the country much more innovative products and services in the years ahead.

    This Monghat disclosed, is already in operation in some markets such as the US and Canada where businesses are mainly online, and considering the increasing growth of online business in the country, the phone apps solution will thrive.

     

     

     

     

     

  • BDCs fault use of BVN for forex transactions

    Association of Bureaux De Change Operators of Nigeria (ABCON) has faulted the Central Bank of Nigeria (CBN’s) decision to make biometric verification number (BVN) a requirement for foreign exchange transactions.
    The CBN forex, issued a circular stipulating the use of BVN for all forex transactions from November 1. It also said it would discontinue the sale of forex to BDCs, which fail to provide BVN of its directors by that date.
    In a statement, ABCON faulted the November 1st deadline, saying it is too close. It also said making BVN mandatory for foreign exchange transactions, so soon, without adequate publicity, training and other measures will enhance activities of the parallel market operators and widen the gap between the official exchange rate and the parallel market exchange rate.
    According to the statement, “The return of the CBN directives on the use of BVN on sales of foreign exchange to BDC clients will lead to confusion and delay in the use of applicable codes for processing of ‘Form M’.
    If adopted, the policy will also lead to cancellation of foreign credit lines by correspondent banks; increase mistrust between regulators and operators and increase misery level of majority of Nigerians already in a significant poverty level.
    The policy shift, it added, would lead to decline in public confidence in CBN’s ability to sustain its macroeconomic objectives; set the pace for growing foreign interference in Nigeria’s monetary policies; loss of jobs; increased fraud and other related financial crimes.
    The association noted that while it is not totally opposed to the use of the BVN for foreign transactions, it believes that the November 1st date is too early for such policy, in view of the preparations required for smooth implementation.
    Consequently, the association, among other things, recommended some measures that would facilitate the introduction of BVN for foreign exchange transactions.
    “The CBN should resume training of BDC operators for the use of the BVN platform, and there should be massive sensitisation of the public on the new policy. There should be a CBN/ABCON taskforce to monitor compliance and eliminate non-compliant BDCs, adding that this must be complimented with enhanced security surveillance at the airports and boarders,” it said.
    The association also called for harmonisation of the different operational guidelines by the CBN and the National Financial Intelligence Units (NFIU), as well as a review of the scope of BDC operations as defined by the CBN guidelines to reflect current market realities.
    The group has also written to the apex bank governor, highlighting the various factors responsible for the sudden rise in the parallel market exchange rate from N212 to N224 per dollar within the last three weeks.