Business

CBN gives update on Naira scarcity

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The Central Bank of Nigeria, CBN, has said enough Naira notes are in circulation amid reports of scarcity of banknotes.

In a statement issued by the Corporate Communications Department of the CBN, the apex bank explained the reasons behind the scarcity of Naira notes in some parts of the country.

CBN’s reaction is coming amid a series of complaints by some bank customers concerning the scarcity of Naira notes at bank counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs).

However, the apex bank said the seeming currency scarcity was occasioned by large volume withdrawals of cash from various CBN branches by Deposit Money Banks (DMBs).

It stated that panic withdrawals by bank customers were also partly responsible for the seeming scarcity.

The CBN said there is no shortage of naira notes, noting that there is adequate supply of the currency in the economy.

“The attention of the CBN has been drawn to reports of alleged scarcity of cash at banks, ATMs, PoS and BDCs in some major cities across the country.

“Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.

“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country,” the statement reads.

Business, Politics

Buhari regime and CBN are responsible for passport scarcity- NIS

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The Nigeria Immigration Service (NIS) has blamed the scarcity of passport booklets on President Muhammadu Buhari’s regime and the Central Bank of Nigeria’s policy on forex.

The NIS comptroller-general, Idris Jere, disclosed this at a public hearing organised by an ad hoc committee of the House of Representatives in Abuja.

“Foreign exchange regulation policy of the government and CBN’s refusal to grant access to forex for importation of the passport booklets. We generate forex from sale of passport but we do not have access to buy the same booklet and that is a challenge for NIS,” explained the NIS chief.

He added;

“The factors responsible for scarcity of passport include the inability to set up passport-producing factory in Nigeria as its production is done abroad. The major seven components used for producing passports are sold in international market and the assemblage and production are done in Malaysia.”

Mr Jere explained that Irris Smart Technology Ltd, the foreign company responsible for producing the Nigerian passport, had done well given the prevailing circumstances, noting that the presidential directive to commence the production of passports locally by the Nigerian Security Printing and Minting (NSPM) was a welcome development.

He, however, recommended that a proper exit plan be implemented for a smooth handover from the foreign firm to prevent any breach of contract and production process.

Irris Smart managing director Yinker Fisher said before the advent of the e-passport system, the Nigerian passport was marred with embarrassing irregularities and inconsistency under the watch of NSPM.

According to him, due to a lack of capacity, NSPM outsourced the process to three companies, leading to many irregularities, including passport colour and numbers.

Business

Emefiele, CBN given two-week ultimatum to make cash available to Nigerians

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NLC and the Trade Union Congress (TUC) have extended the ultimatum issued to CBN to make cash available in banks by two weeks.

The two unions had earlier threatened in a one-week ultimatum to picket all branches of the CBN beginning from March 29 if President Muhammadu Buhari’s regime and the CBN did not end the nationwide cash crunch.

NLC president, Joe Ajaero, told a news conference in Abuja that the decision to extend the ultimatum was reached after consultations with affiliate members of both unions and their national executive councils.

He said reports from state branches of the two unions indicated partial compliance by the CBN with the Supreme Court judgment to make cash available in banks.

“We agreed that we have to monitor this compliance for the next two weeks to establish whether it is sustainable.

CBN rushed to move money to commercial banks, but some of the banks are getting empty again. Queues are returning to some of them,” stated Mr Ajaero.

He added;

“It will be very naive of the NLC to hurriedly call off the action. We would want to loosen up for another two weeks, however. The NLC and TUC have decided to allow March 29 to pass without any picketing but to watch for the next two weeks.”

He explained that “after two weeks from today, the NEC of the two organisations will meet to decide whether the CBN has fully complied and whether its compliance is sustainable to drive the economy.”

The NLC president said committees had been set up at the national and state levels of the two organisations to monitor the level of compliance by the banks.

He also observed that some banks did not comply with the CBN directive to operate at the weekend.

“We equally wish to advise the CBN to play its regulatory role because it can sanction banks that are not compliant as Nigerians have suffered so much,’’ Mr Ajaero said.

TUC president Festus Osifo corroborated Mr Ajaero’s submission that the labour unions had agreed to sustain the push in the next two weeks to ease the hardships of Nigerians.

“With reports that came from the states, there had been some level of compliance, but some banks refused to comply or refused to open, and they did not open at the weekend,” stated Mr Osifo.

“We call on the CBN to encourage them to sustain the availability of cash as the confidence in the system has been eroded. The CBN needs to do much more. It needs to supply much more money into the economy.”

Business, Lifestyle, Politics

CBN directs banks to dispense and receive old N200, N500 and N1000 notes

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The Central Bank of Nigeria has directed commercial banks to dispense and receive old naira notes as legal tender across the country.

A statement by the acting Director, CBN Corporate Communications, Isa AbdulMumin, says the apex bank gave the directive at a Bankers’ Committee meeting held on Sunday.

Banks have now been authorised to dispense and receive the old Naira notes.

Business

EFCC, CBN officials in Zenith, UBA, Access, Keystone, First Bank over naira scarcity

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Officials of the Central Bank of Nigeria (CBN) and the Economic Financial Crimes Commission (EFCC) on Monday visited banks in Gombe to ensure proper circulation of the new naira notes.

The CBN team was led by Yusuf Philip-Yila, the director at the Development Finance Department, CBN Directorate Headquarters.

Mr Philip-Yila said the monitoring exercise was to enforce compliance with the new CBN guidelines towards ensuring that cash released to banks was made available to the public.

He stated that the exercise was also part of efforts to guard against violation of CBN guidelines, as well as address challenges militating against cash circulation in the state.

The CBN director noted that the visit was also to caution banks against any attempt to sabotage the circulation of the new notes in Gombe and added that during the visit, some challenges observed, especially with cash dispensing through automated teller machines (ATMs) were addressed.

He said the managements of the concerned banks were engaged to improve the circulation of the new banknotes through ATMs, stressing that more new banknotes had been made available to commercial banks, to improve the ease of doing business, and make new banknotes more available to residents.

“We are enforcing the directive of the Governor, Mr Godwin Emefiele, who has directed banks to commence paying customers, new naira notes over the counter, subject to a maximum daily payout limit of N20,000,” he said.

The CBN official said the exercise would reduce queues at ATMs in Gombe.

The combined team of the CBN and EFCC visited Polaris, Keystone, Zenith, Unity, Heritage, First Bank, Access, UBA and Union banks.

Business, Lifestyle

Lawyer sues CBN, seeks extension of deadline for old banknotes

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Joshua Alobo has approached the Abuja Division of the Federal High Court, praying the court to stop the Central Bank of Nigeria (CBN) from implementing the January 31 deadline to phase out the old naira notes (N200, N500 and N1,000).

Mr Alobo, in the suit marked: FHC/ABJ/CS/114/2023, also prayed the court to make an order extending the duration when the old banknotes would cease to be legal tender for three weeks.

Listed as first to third defendants in the suit are the CBN, the CBN governor, Godwin Emefiele, and the attorney general of the federation, Mr Abubakar Malami.

He said this was to give time for when commercial banks would have enough new notes to dispense.In an affidavit deposed by a citizen, Musa Damudi, the plaintiff told the court that the CBN governor had, on October 26, announced that the apex bank would introduce a new series of redesigned N200, N500 and N1,000 banknotes into the financial system.

The lawyer said the decision, though a welcome idea, is causing anxiety among Nigerians, especially the less privileged, as they have yet to access the new naira notes.

He said that although the new notes, unveiled on November 23 by President Muhammadu Buhari to curb inflation and entrench a cashless society to curb money laundering and corruption, their unavailability was causing apprehension among Nigerians.

Mr Alobo accused banks of failing to make the new notes available to their customers, adding that as of December 25, he was still given the old notes on the counter and through the automatic teller machine (ATM).

The law professor argued that the January 31 deadline discriminates against rural dwellers, poor and less privileged persons.

“This is as politically exposed persons are paid with the redesigned notes. The cashless policy of the CBN is innovative and a welcome development but the rural dwellers that constitute the bulk of the population do not have access to internet and banking facilities,” Mr Alobo explained.

“The current daily limit of transaction to N20,000 is against the central bank’s daily limit of N100,000.”

A date has been fixed to hear the case.

Business

CBN appeals to Akwa Ibom residents to return old naira notes before January 31 deadline

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THE Central Bank of Nigeria, CBN, has made further appealed to Akwa Ibom state residents to return the old notes of N1000, N500, and N200 to the banks before January 31, 2023 when they would be phased out of circulation completely.

The Deputy director of CBN, Mr. Dominic Ekanemesang, made the appeal on Sunday when he led other officials of the Apex bank to some Churches within the metropolis to sensitise them on the newly redesigned Naira notes and its cashless policy.

Speaking at Sacred Heart Catholic Parish, Aka Offot, Uyo, Ekanemesang advised the congregation to embrace its cashless policy because it has come to stay.

He reiterated the commitment and determination of the CBN to achieving a cashless economy, stressing that its cashless policy aims at reducing too much money in circulation in the country.

His words;

“We are here to carry out sensitisation on the new currency redesign. I’m sure all of us here are aware that we have new notes of N1000, N500 and N200 and that after January 31, 2023 the old notes will cease to be legal tender.”

You are also aware that the three higher denominations are mostly used for illicit transactions such as, kidnapping, terrorism financing and money laundering.

So we are not going to have the newly redesigned notes much in circulation because we are moving to a cashless economy.

“We want to ensure that we don’t have too much money in circulation. Please pass this message to your relatives, parents, sisters and brothers that the cashless policy has come to stay; we want to safeguard our financial system.

“Also we want to bring the citizens into the financial system, so if you don’t have a Bank account this is an opportunity for you to go and open a bank account and deposit the old notes into your account.

“Please this is an appeal. Central Bank of Nigeria will not want any bank customer to lose his or her money. So please return all the three higher denomination of the old Naira notes to the bank on or before January 31”

While responding to questions on the issue of commercial banks still dispensing the old Naira notes to customers, as well as scarcity of the New notes, the CBN director assured the parishioners that banks seen not dispensing the newly redesigned notes at their ATM points from this week would be sanctioned.

He however, appealed to the Church leaders to help in enlightening their members on the cashless policy.

Welcoming the delegation, the Parish Priest, Very Rev. Father Donatus Udoette, said the Parish actually started enlightening the Parishioners on the January 31 deadline since December 2022.

He commended the Apex bank for introducing the cashless policy expressing strong believe that it will impact positively on Nigeria’s economy.

The Dominion House of Grace Church was among the Churches the CBN officials sensitised on the New Naira notes and its cashless policy on Sunday.

Business, Politics, World News

CBN won’t devalue naira.

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Central Bank of Nigeria (CBN) is unlikely to devalue the naira, despite rising demand for the dollar at both official and parallel markets, The Nation has learnt.

A report by Augusto & Co. titled: “2022: The Story So Far & What Lies Ahead”, said the naira, which started this year at N567/$ at the parallel market, now exchanges at N707/$. It is N416.37/$ at the official market.”The report added that the declining value of the local currency “has pushed up the exchange rate premium between the official and parallel markets to N290.63/$.

”The last devaluation of the naira was in May 2021, when the CBN adopted the Nigerian Autonomous Foreign Exchange Rate (NAFEX), also known as the Investor and Exporter (I&E) forex window rate, as its official exchange rate to the dollar.The report read in part: “We do not expect the CBN to officially devalue the exchange rate despite sustained pressure. At the official market, we expect the naira to hover between N419/$ and N425/$ through the end of 2022.The persistent swings and volatility of the naira exchange rate have worsened in recent time. It began a wild race on July 19, depreciating by 16 per cent to N717/$ on July 28 before appreciating to N707 on July 29.

”The report explained that election-related uncertainty will severely limit capital inflows in the remaining months of 2022, even if domestic interest rates rise further.The Agusto & Co. report noted that long-term inflation is one of the exchange rate stoking factors, adding that the differential between two countries’ long-term inflation rates would be mirrored in the exchange rate depreciation between both nations.In other words, the long-term rate of inflation of the naira compared to that of the US Dollar plays a significant role in what the value of the Naira would be relative to the dollar.This, it predicted, will also impair CBN’s ability to intervene in the foreign exchange market, hence, the reserves level will stabilise at about $41 billion by the end of 2022.Since the Naira has a higher long-term rate of inflation (12 per cent) compared to the US Dollar (two per cent), it is a weaker currency and will depreciate by approximately 10 per cent,” it said.The report enumerated three major mechanisms for exchange rate determination, namely, pegged exchange rate system, floating currency, and a crawling peg.It explained that although each of the options has its own shortcomings, a crawling peg option is more suitable for Nigeria.

As a result, external reserves accretion, which has been ostensibly triggered by the CBN’s interest rate hike, is expected to be constrained.An Economist and Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said the naira surprised speculators and market watchers by appreciating by 1.5 per cent from N718/$ to N707/$ on Friday.“Most analysts were fearing that an N1000/$ was within shouting distance. As unpalatable as N707/$ may sound, some Nigerians are breathing a sigh of relief. The reason for this respite is mainly because of a naira crunch,” he explained.

He said there is temporary resistance at N718/$ and a market correction which means the naira may appreciate N695/$ before falling again.These are technical movements which do not address the fundamental weaknesses in the Nigerian forex market and the short supply of dollars from the CBN and exporters. That means, there is a limit to how much naira is available in the system,” Rewane said.

Lifestyle

Nigerians spent $39.66bn on studying abroad, healthcare —CBN report

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The Central Bank of Nigeria (CBN) has revealed that Nigerians spent a total of $39.66 billion on foreign education and healthcare-related services between 2010 and 2020.

Out of this total $28.65 billion was specifically paid by Nigerian parents and guardians for their wards to study abroad, while $11.01bn was for healthcare-related services in foreign countries.

CBN disclosed this in its Balance of Payment report published on its website which was analysed in another report titled ‘A Simple and Factual Explanation of Nigeria’s Exchange Rate Dynamics”.

According to the report, the high cost of these services drastically increased the demand for foreign exchange in the country, which has put a strain on the value of the naira to the dollar.

The report which seeks to provide answers to questions on the continuous rise and fall of Nigeria’s exchange rate explained that the exchange rate of the naira was the price of the dominant foreign currency in the country – the US dollars.

It added that like the price of every other commodity, the price of the dollar in Nigeria is determined by the interplay of demand and supply of the foreign currency in the country’s market.

The report noted that an increase in demand for a commodity leads to a rise in the price of that commodity, adding that a similar result is replicated when a fall in supply occurs.

Using the same logic, the report explained that the depreciation or appreciation of Nigeria’s exchange rate or the naira is determined by the rise or fall of demand and supply.

On-demand, the report explained that factors such as the cost of foreign education, healthcare, and a large import bill had major impacts on the increase in the demand for foreign exchange in the country.

It added that the factors had also greatly contributed to the weakening of the naira.

According to the report, between 1998 and 2018, the number of Nigerians studying abroad quadrupled, from 15,000 to 96,702, a rise attributed to the spike in the cost of foreign education.

It added, “Today, a sizeable amount of the foreign exchange request Nigerian banks receive for school fees are for primary and secondary school education, some of which are for neighbouring African countries.”

Lifestyle

CAN condemns loan apps, urges CBN to curb operators

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The Christian Association of Nigeria (CAN) on Wednesday condemned companies behind loan apps operating in the country, stating that they were taking advantage of vulnerable people due to the current economic predicaments.

CAN labelled the operators of the lending apps as faceless people operating against the financial regulation of the country. The body called their practice “unacceptable, irresponsible, suicidal and unfair.”

The News Agency of Nigeria (NAN) reports the general secretary of CAN, Joseph Daramola, saying that, “Our attention has been drawn to the antics of some faceless people who are unknown in the financial sector but giving out loan facilities to vulnerable people as a result of economic predicaments in the country.”

He said the Central Bank of Nigeria (CBN), other financial regulators and the federal ministry of finance need to curb the activities of the loan sharks.

Daramola explained that CAN findings uncovered some, “unscrupulous people developed their apps to extort money from innocent people on the pretext of giving them short loan facilities.

“Their interests are not only higher than the banks, but they use blackmail and other antics to get their money back.” he said, adding that, “These are not only against the financial regulation but totally unacceptable, irresponsible, suicidal and unfair”.

Business

First Bank appoints three new directors, seeks CBN approval

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First Bank of Nigeria Limited has announced the appointment of three additional Executive Directors by the Board.

The company said in a statement on Wednesday that the appointment of the directors was subject to the approval of the Central Bank of Nigeria (CBN).

According to the statement, which was signed by the Company Secretary, FBN Holdings, Seye Kosoko, the directors include Olusegun Alebiosu, Executive Director, Risk Management and Executive Compliance Officer; Oluwatosin Adewuyi, Executive Director, Corporate Banking; and Ini Ebong, Executive Director, Treasury and International Banking.

The statement said prior to their appointments, Alebiosu was the Group Executive and Chief Risk Officer of FirstBank Group, while Adewuyi was the Group Executive, Corporate Banking where he was responsible for the Bank’s corporate banking business following the exit of the previous Executive Director.

It added that Ebong was the Group Executive in charge of the Treasury and International Banking at FirstBank where he was responsible for the Bank’s Treasury business, its international banking franchise across sub-Saharan Africa covering six countries, among others.

Business

Commercial banks are shunning eNaira – CBN

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The Central Bank of Nigeria (CBN), has knocked commercial banks across the nation for not promoting the eNaira launched with fanfare in October, 2021.

The apex bank also said commercial banks in Nigeria are not doing much to educate the Nigerians about the many benefits of eNaira platform.

Officials of the CBN took turns in Kaduna on Wednesday to lecture youth corps members, hundreds of students from tertiary institutions across the state and other members of the public on the eNaira initiative.

Head, Development Finance Department of the CBN, Aminu Muhammad, an assistant director, made this known while speaking in Kaduna stressing that financial institutions that are under the purview of the CBN are supposed to play critical roles in growing the economy.

Speaking at the CBN Fair which held in Kaduna and simultaneously in Kano, Muhammad said the commercial banks were not effective in promoting the eNaira.

He said; “Commercial banks are lagging behind and that is why the CBN is coming in to intervene. For example, the information asymmetry like what we saw when they were talking about the e-Naira in Kano. Kaduna people had that awareness, earlier unlike in Kano, which is because of information asymmetry.

“All the banks knew about e-Naira but members of the public do not know. Some people probably might be hearing it for the first time. There is imbalance of information as regards the e-Naira, and that is why the CBN has come out to sensitize the public, give people the opportunity to come in so as to block that information asymmetry.”

Business

CBN releases N200m worth of eNaira to banks

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The Central Bank of Nigeria (CBN) has released N200 million worth of eNaira to banks for use in the country.

The CBN Governor, Godwin Emefiele, disclosed this at the launch of the digital currency on Monday in Abuja.

He said that there had been overwhelming interest and encouraging response in the system, adding that 33 banks, 2,000 customers, and 120 merchants had already registered successfully with the platform, which is available via an app on Apple and Android.

Emefiele said: “Today, customers who download the eNaira Speed Wallet App will be able to perform the following:

“Onboard and create their wallet; Fund their eNaira wallet from their bank account; Transfer eNaira from their wallet to another wallet; Make payment for purchases at registered merchant locations.

“Mr. President, today you make history, yet again, with the launch of the eNaira – the first in Africa and one of the earliest around the world. Mr. President, as you make groundbreaking reforms, there had been continuing debates on the true value of the Naira.”

The CBN governor said the launch of the eNaira was not a one-off event, adding that the bank would continue to fine-tune the digital currency.

He added: “A key feature of the eNaira is that it can be accessed without internet, an attribute the government hopes will engender financial inclusion.

“Therefore, Nigerians should expect to see additional functionalities in the coming months, including Accessibility and onboarding of customers without BVN, and the use of the eNaria on the phone without the internet will further drive financial inclusion, making Nigeria one of the first countries in the world to deploy the CBDC via USSD on phones without relying on internet connectivity.”

Politics

Kogi govt maintains innocence, even as Sterling bank returns N20bn bailout funds to CBN

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The Kogi State Government on Friday insisted that it is innocent of accusations by the Economic and Financial Crimes Commission (EFCC) in the wake of the resolution of the lawsuit on the alleged misappropriation of a N20 billion bailout fund.

It therefore demanded an apology from the anti-graft commission.

According to the Kogi State Government, it was ’embarrassing’ for the anti-graft agency to institute a lawsuit over the funds.

This was contained in a statement issued by the Commissioner for Information in Kogi, Mr Kingsley Fanwo, who stated the government’s position at the presentation of awards to senior journalists who participated in the GYB Essay Competition for Nigeria’s Political and Crime Editors in Lagos.

Ripples Nigeria had reported that the EFCC on Friday told the court that it was no longer pursuing the case, after Sterling Bank which was holding the funds gave its commitment to return the money to the Central Bank of Nigeria (CBN).

The bank claimed it did not act on the directive of the Kogi State government when it kept the money in a mirror account.

Justice Chukwujekwu Aneke granted the order of withdrawal on Friday sequel to a motion filed and argued by EFCC counsel, Mr Kemi Pinheiro (SAN), leading Mr Rotimi Oyedepo.

Pinheiro listed six grounds upon which the judge granted the prayer, adding that “the EFCC is a responsible body”.

Nonetheless, Fanwo said it was unfortunate that the commission ignored thorough explanations by the state government on the matter, but chose to heed allegations from “hired guns.”

“It was unfortunate that the commission chose to believe allegations that it fixed N19 billion out of the amount in a new generation bank,” he stated.

He further implored the EFCC to always exhibit justice and professionalism during the discharge of its responsibilities while clarifying that the state government was yet to receive details of the judgement.

Fanwo declared that the state government would address the media after receiving the Certified True Copy of the judgment.

Business

Court approves launch of CBN’s digital currency

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Justice Taiwo Taiwo of the Federal High Court, Abuja, on Thursday gave the Central Bank of Nigeria (CBN) the approval to use the eNaira for its digital currency.

A firm, ENaira Payment Solutions Limited, had challenged the CBN’s use of the name at the court.

In a document signed by its lawyers, Olakunle Agbebi & Co, the company accused the apex bank of trademark infringement for adopting the eNaira.

It asked the CBN to desist from using the proposed name.

At Thursday’s proceedings, the CBN legal team led by D. D. Dodo (SAN) urged the court to dismiss the plaintiff’s motion to halt the launch of the digital currency.

In his ruling, the judge held that the use of eNaira would be in the national interest.

He ordered the apex bank to go ahead with the launch of the eNaira.

The launch of the digital currency which was slated for Friday was later postponed.

The judge said he expects the CBN to adequately compensate ENaira Payment Solutions Limited for using its trademark name.

He adjourned the matter till October 11.

Business

CBN reveals how e-Naira will boost cross-border trading in Nigeria

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The Central Bank of Nigeria (CBN) on Wednesday revealed how the digital currency, e-Naira, would boost cross-border trading in the country.

The apex bank will launch the pilot scheme on the digital currency in partnership with Bitt Inc., a Barbados-based financial technology company on October 1.

The CBN’s Director of Information Technology, Rakiya Mohammed, who spoke at a virtual forum of the committee on the e-business industry in Abuja, said the adoption of the digital currency would boost cross-border trade and enable the apex bank to formulate better macroeconomic policies.

She said: “If people adopt more of the usage of the e-Naira, then we will be able to have more data to formulate better macroeconomic policies.

And when countries come on board and create their own digital currencies then we will be able to have a faster exchange of currencies, and therefore we might be able to boost cross-border trade at a much lower cost.

“Of course, payment efficiency, even though we know that Nigeria has one of the best payment systems in the world, we will still be able to improve on that.

“We believe that the e-Naira will be a catalyst for the digital economy because the people who are outside the formal banking sector will be integrated.”

Business

CBN begins probe on banks forex transactions, blows hot

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Concerned about the Naira-to-Dollar exchange rate, Nigeria’s Central Bank has issued a strong warning to Deposit Money Banks, threatening to revoke their licenses for one year, if they are found wanting in foreign exchange operations.

According to CBN, banks must always observe due diligence when carrying FX transactions.

CBN gave the warning in a letter by the Director of Trade and Exchange Department, Ozoemena Nnaji, and addressed to the DMBs obtained by Ripples Nigeria on Sunday

Nnaji urged the banks to, not only ensure to know their customers, but also to know their customers ‘ businesses.’ She said the directive was necessitated by recent occurrences in the FX market.

Part of the letter reads:“The CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).

“Given this responsibility and in view of recent occurrences in the market, the CBN will like to remind banks to desist from all forms of FX malpractices.

“We wish to reiterate that FX operating licences of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year,” the director said.

She also urged all the DMBs concerned to take note and ensure compliance.

Lifestyle

Police arrests fake CBN agent in Kano

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Police operatives have arrested a fake Central Bank of Nigeria (CBN) agent in Kano State.

The suspect, Buhari Hassan, alleged defrauded 64 people of N6 million by posing as CBN agents in the state.

The spokesman of the state police command, DSP Abdullahi Haruna Kiyawa, who confirmed the development to journalists on Wednesday, said the suspect was notorious for duping unsuspecting members of the public using fake documents.

He added that suspect was arrested at Yankaba Quarters of the state.

Kiwaya said: “On 31/08/2021, at about 1500hrs, information was received from a credible source that, one Buhari Hassan, ‘m’, 38 years old of Sauna Kawaji Quarters, Nassarawa LGA Kano, was posing as an agent of National Cotton Association of Nigeria under Central Bank of Nigeria (CBN) Anchor Borrower Programme to defraud unsuspecting members of the public using fake documents.

About 64 persons have reported that the suspect defrauded them the sum of Six million, two hundred and ninety-four thousand, two hundred Naira (N6,294,200.00).

“The Commissioner of Police, Sama’ila Shu’aibu Dikko, has ordered for discreet investigation. The suspect will be charged to court upon completion of the investigation.”

Business

CBN gets court’s order to block accounts of fintech companies

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Justice Ahmed Mohammed of the Federal High Court, Abuja, on Tuesday granted the Central Bank of Nigeria (CBN)’s request to block accounts of six fintech companies for the next six months.

The firms are Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Limited OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited.

The judge gave the order while ruling on a motion filed by a former Attorney-General of the Federation and Minister of Justice, Chief Micheal Aondoakaa (SAN), on behalf of the CBN Governor, Godwin Emefiele.

The apex bank approached the court to order the temporary freezing of the companies’ accounts pending the conclusion of an investigation into their financial activities.

The CBN alleged that Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited and Trove Technologies Limited operate in Nigeria without licenses as asset management companies and utilize forex sourced from the Nigerian foreign exchange market for purchasing foreign bonds/shares in contravention of its circular with reference No: TED/FEM/FPC/GEN/01/012 and dated July 01, 2015.

The apex bank told Justice Mohammed that the foreign exchange deals with the defendants contributed to the devaluation of the Naira, hence the need to block their accounts for 180 days.

Business

How COVID-19 caused devaluation of Naira – CBN

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The Central Bank of Nigeria (CBN) on Monday explained how the COVID-19 pandemic contributed to the recent devaluation of Naira against the United States Dollar.

The Deputy Governor of CBN, Corporate Services, Edward Adamu, who addressed members of the House of Representatives Committee on Finance during an interactive session on 2022-2024 MTEF/FSP organised by the House in Abuja, said the pandemic was responsible for the devaluation of the Nigerian currency and the indirect shortage of foreign exchange supply.

Adamu stressed that the COVID-19 had devastating effects on the nation’s economy.

He said: “There are three major ways that we get forex. These are proceeds from the sale of crude oil, foreign portfolio inflows, and remittances.

“Crude oil sale has not been as high as we all want it to be and obviously in the aftermath of COVID-19, the global economy was grounded to a halt and the use of crude oil also was reduced.

“Sometimes in April last year, we had crude oil selling at negative, which means that people were being paid to store what they bought. Therefore, the avenue for forex inflows was significantly reduced.”

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