Showing posts with label CBN. Show all posts
Showing posts with label CBN. Show all posts

CBN sets N1m limit for cash collection centres

The Central Bank of Nigeria has pegged the minimum transaction limit for corporate and individuals transacting with Bank Neutral Cash Hubs at N1m and N500,000 respectively.

The banking regulator disclosed this in a guideline for the registration and operation of Bank Neutral Cash Hubs in Nigeria released on Monday.

It said, “The threshold for eligible transactions at a BNCH shall be as follows: A minimum transaction value of N500,000 for individuals; a minimum transaction value of N1m for corporate entities.”

According to the apex bank, it launched the Nigerian Cash Management System in a bid to reduce cost and improve operational efficiency in the country’s cash management value chain in collaboration with the Banker’s Committee.

It said one initiative towards the goal is the Bank Neutral Cash Hubs. The CBN said, “BNCHs are cash collection centres to be established by registered processing companies or Deposit Money Banks based on business needs.

“They will be located in areas with high volumes of commercial activities and cash transactions. The hubs will provide a platform for customers to make cash deposits and receive value irrespective of the bank with which their account is domiciled.”

 It added that the guideline aims to provide minimum standards and requirements for BNCH registration and operations for effective supervision.

The apex bank said one of the key objectives for setting up the BNCH is to reduce the risks and costs borne by banks, merchants, and huge cash handlers in the course of cash management activities; deepen financial inclusion; and leverage on shared services to enhance cash management efficiency.

It added, “A BNCH may carry out the following: Receipt of naira denominated deposits on behalf of financial institutions from individuals and businesses with high volumes of cash.

“High volume cash disbursement to members of the public on behalf of financial institutions; any other activities that may be permitted by the CBN.

“BNCH shall not carry out investing or lending activities; receive, disburse, or engage in any transaction involving foreign currency; undertake any other transaction which is not prescribed by this guideline; sub-contract another entity to carry out its operations; any other activities that may be prohibited by the CBN.” Punch


N4.7t debt: AMCON pays N2tr to CBN

The Asset Management Corporation of Nigeria (AMCON) has repaid N2 trillion out of its N4.7 trillion commitment to the Central Bank of Nigeria (CBN), its Managing Director/CEO Ahmed Kuru has said.

Speaking on the corporation’s focus in his new five-year term, the AMCON boss,  said the corporation has achieved achieved its first mandate of purchasing the Non-performing Loans (NPLs) and providing liquidity to the commercial banks.

In terms of recoveries, he said AMCON has made a total recovery of above N1.2 trillion, sold assets worth about N500 billion and resolved close to 5000 Eligible Bank Assets (EBSs).

“We are focused on the second and most difficult phase of recovery and restructuring of the bad loans. Recall that AMCON acquired over 12,000 NPLs worth N3.7 trillion from 22 banks and injected N2.2 trillion as financial accommodation to 10 banks to prevent systemic failure. As a result of this intervention, our current liability with CBN is around N4.7trillion while the N2 trillion had been repaid so far,” he said.

He said before AMCON was established,  the economy was in a dire straits. “There were foreign portfolio withdrawals of credit lines and investment from Nigeria; the stock market also collapsed leading to loss of about 80 per cent of its value and the banking industry crisis deepened due to poor risk management that led to increase in the Non-Performing Loans (NPLs) of the banks as a percentage of industry loans,” he said.
“At a point in 2009 NPLs as percentage of all bank loans was as high as about 37.25 per cent. I salute the courage and the wisdom of the Central Bank of Nigeria (CBN) for quickly intervening by proposing to the National Assembly the need to set up an Asset Management Corporation to stabilise the economy, which was the global trend at that time”.

Kuru said the fundamental objectives for the establishment of AMCON was to—rescue commercial banks and some underlying strategic businesses in Nigeria from the brink of collapse in the aftermath of the global financial crises of 2008 through acquisition of non-performing loans and to dispose of the underlying assets in the most profitable manner.

“AMCON also had the mandate to recapitalise the banks and to recover the debts using the various resolutions mechanisms created under the Act, which I can tell you have been executed effectively,” he said.

Also, in an attempt to focus our resources on the recovery mandate, we have identified about 6,000 loans with outstanding balances below N100 million, which constitute only 20 per cent of our current portfolio.

This portfolio has been outsourced to debt recovery agents under the Asset Management Partners (AMP) scheme, which has created huge employment opportunity for others. This has enabled the corporation to focus on fewer accounts, which make up 80 per cent of the portfolio.

“In our reckoning, if AMCON is able to resolve the nearly 2000 accounts it would have achieved more than 80 per cent of its recovery mandate. In line with our sunset period, we are tinkering with the idea of increasing the threshold of the AMP scheme to N1 billion. We have also classified 350 accounts with current exposure of over N3.2 trillion into a category referred to as Criticized Assets,” he said.

Kuru said the resolution of these accounts are considered to be germane to the success of AMCON’s recovery mandate.

“We give special attention to these accounts at top management level and develop strategies for resolving them. The largest concentration is in the energy sector, which constitutes 27 per cent. As we have always stated, one of the major challenges to AMCON’s recovery mandate is the slow pace of our judicial processes.

However, we have continued to engage with the judiciary, and we believe that there is now greater awareness about the role of AMCON amongst the Judges at the trial courts as well the Justices of the appellate courts and they have been supportive,” he added. Thenationonlineng

Pharmacist to sue CBN and Access bank

A pharmacist, Bassey Isreal, is set to sue the Central Bank of Nigeria and Access Bank Plc for freezing his account.

His lawyer, Mr. Tope Akinyode, revealed this to The PUNCH on Wednesday.

Akinyode, who is the National President of the Revolutionary Lawyers Forum, said his client, who was in charge of medical services during the #EndSARS protest in Port Harcourt, had his account frozen on October 15, 2020.

He said, “We will sue the CBN and Access Bank for freezing my client’s account. The fundamental human rights suit will be instituted next week. The bank must explain why it froze the account without a court order.”

One of the #EndSARS facilitators, Modupe Odele, aka Mochievous, was stopped from travelling to the Maldives by the Nigeria Immigration Service on Monday while her passport was seized.  


CBN announces new bank charges for transfers, ATM

Central Bank of Nigeria has announced a new regime of charges banks can levy on their customers, including on Automated Teller Machine transactions.

In a move that will boost the Christmas spirit of bank customers, the CBN slashed ATM charges after third withdrawal from from N65 to N35.

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There were other reductions, according to the new Guide to Charges by Banks, other Financial and Non-Financial institutions, released on Sunday.

The new rates will be effective from 1 January 2020, said Chibuzor Efeobi, Director Financial Policy and Regulation Department.

Under the new rules, Card Maintenance Fee on all cards linked to current accounts has been eliminated.

Banks will also now charge a maximum of N1 per mille for customer induced debit transactions to third parties and transfers or lodgments to the customers’ account in other banks on current accounts only.

The guidelines also pegged the Advance Payment Guarantee to a maximum of one per cent of the APG value in the first year and 0.5 per cent for subsequent years on contingent liabilities.

Other reductions include Advance Payment Guarantee (APG), now pegged at maximum of one per cent of the APG value in the first year and 0.5 per cent for subsequent years on contingent liabilities.

The new guide set debit card charge at a one-off charge of N1,000 for the issuance of cards, irrespective of card type regular or premium.

The same one-off charge of N1,000 applied for the replacement of debit cards at the customer’s instance for lost or damaged cards.

Upon expiry of existing cards, customers are to pay the same one-off charge of N1,000 irrespective of card type and no charge should be required for pre-paid card loading or unloading.

The current NIBSS Instant Payments (NIP) charges applied to use of Unstructured Supplementary Service Data (USSD), purchase with cash-back would attract a charge of N100 per N20,000 subject to cumulative N60,000 daily withdrawal.

The maintenance fee for cards linked to savings account, has been reduced to a maximum of N50 per quarter from N50 per month amounting to only N200 per annum instead of N600.

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There would be no more charges for reactivation or closure of accounts such as savings, current and domiciliary accounts while status enquiry at the request of the customer like confirmation letter, letter of non-indebtedness and reference letter would now attract a fee of N500 per request.

“On Current Account Maintenance Fee (CAMF), the guide expressly stated that this would be applicable only to current accounts in respect of customer-induced debit transactions to third parties and debit transfers and lodgments to the customer’s account in another bank”, said Isaac Okorafor, the CBN sspokesman.

“It emphasised that CAMF is not applicable to Savings Accounts.

“CBN carried out the review of the guide, which also prescribes charges permissible for Other Financial Institutions and non-bank financial institutions, in order to align with market developments.

“To guard against excess, unapproved or arbitrary charges by banks and other financial institutions, the guide stipulates a penalty of N2,000,000 per infraction or as may be determined by the CBN from time to time for financial institutions that breach any provision of the guide.

“The guide also emphasised that failure by any bank to comply with CBN’s directive in respect of any infraction shall attract a further penalty of N2,000,000 daily until the directive is complied with or as may be determined by the CBN from time to time. ”

Okorafor said that the CBN, has directed banks to log every complaint received from their customers into the Consumer Complaints Management System (CCMS) in addition to generating a unique reference code for each complaint lodged, which must be given to the customer.

According to him, failure to log and provide the code to the customer will amount to a breach and is sanctionable with a penalty of N1,000,000 per breach. PMnews

CBN gov gives condition for reopening borders

The Federal Government’s decision to shut the nation’s land borders against neigbouring countries will remain, despite any short-term losses, until they ratify Nigeria’s proposed anti-smuggling policy, according to Central Bank of Nigeria (CBN) Governor Godwin Emefiele.

According to TheGuardianng news, Emefiele, who held a closed-door meeting with President Muhammadu Buhari at the Presidential Villa, Abuja, yesterday, noted that since the closure, Nigerian rice and poultry farmers had been benefitting from the development.

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According to him, the farmers have been able to market all their accumulated produce, which were before now left unsold as a result of illegal importation and smuggling of the items into the country.

Nigeria is bordered by Niger Republic in the north and Benin Republic in the west. The two countries are noted as having several smuggling routes into Nigeria. Their borders into Nigeria were closed last month.

The closure had earlier raised concerns among Nigerians as the immediate effect was felt through a general rise in the prices of food items, leading to a policy-induced pressure on inflation that caused 0.22 per cent rise to 11.24 per cent in September, against 11.02 per cent in August.


    The average prices month-on-month basis, rose by 1.04 per cent in September, in both food (13.5 per cent) and non-food (8.9 per cent) items, particularly the prices of bread and cereals, oils and fats, meat, potatoes, yam and other tubers, fish and vegetables.

Most of these items, if not all, pass through Benin Republic’s commercial city of Cotonou, with a large portion of them smuggled into Nigeria, adding no economic value to the nation’s fiscal projections.

Emefiele said the development had negatively affected Nigeria’s economy, adding that the government was determined to keep the borders closed until all engagements in connection with the issues were concluded with the neighbouring countries to have them stop the use of their ports as launch pads for smuggling items into Nigeria.

CBN warns Nigeria banks against excessive treasury bill investments

The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, on Tuesday warned Deposit Money Banks against excessive investment in fixed securities to the detriment of real sector financing.

He charged the banking sector to live up to its core responsibility of stimulating the economy by advancing credit to employment generation sectors of the economy.

Emefiele said these at the opening of the 12th annual Banking and Finance Conference with the theme, “The future of Nigerian banking industry-360 degrees.”

The apex bank boss urged the banking industry to embrace the 21st century banking by redirecting surplus resources to critical sectors of the economy.

Represented by the CBN Deputy Governor, Economic Policy, Dr Joseph Nnanna, the governor said unemployment remained the biggest challenge in the country and appealed to the industry to assist government in addressing the challenge.

He further explained that the era of huge Non-Performing Loans which had become a source of worry to the banking industry was now a thing of the past.

Emefiele vowed that anyone benefiting from any loan facility must pay back, adding that the support of the judiciary was needed in this direction.

He said in the last few months, the apex bank had come up with various initiatives to reduce the level of the NPLs in the banking sector.

In the area of unemployment, he said banks had a lot or role to play to create jobs, adding that the apex bank would continue to come up with initiatives to make lending less risky.

Vice President Yemi Osinbajo who declared open the conference said that the Federal Government’s programmes aimed at promoting financial inclusion remained key to the actualisation of President Muhammadu Buhari’s promise of lifting millions of Nigerians out of poverty.

Osinbajo said that financial inclusion was the key to lifting 100 million people out of poverty in ten years, adding the Federal Government through its TraderMoni and MarketMoni programmes had provided microcredit to almost two million petty traders.

To improve opportunities for those at the bottom of the pyramid, Osinbajo said the government was working with the Bank of Industry and other players to move petty traders higher up in the value chain with more resources.(Punch)

Nigerian Students threatens protests against CBN policy on cash deposits

The National Association of Nigerian Students (NANS) has rejected the new policy on cash deposits and withdrawals recently announced by the Central Bank of Nigeria (CBN).

The National President of the association, Mr Danielson Akpan, said students might stage a protest against the policy.

Akpan said since the cashless policy was introduced by CBN in 2012, it had ensured seamless transactions by Nigerians in the purchase and payment of goods and services.

He said the policy had contributed greatly to the reduction of financial crimes both in the private and public sectors, adding that it had also led to significant reduction in the rate of armed robbery in communities, offices and on highways.

Akpan, however, said the new policy recently announced by the CBN had heightened concerns and raised palpable fears amongst Nigerians, as it affected charges on deposits and withdrawals above N500,000 and N3,000,000 for individual and corporate accounts respectively.

“This is to say the least, unacceptable and ridiculous.

The new cashless policy by CBN is viewed by Nigerian students in particular and Nigerians in general as a dishonest attempt at criminally deducting customer’s hard-earned savings in favour of government, just as VAT was mindlessly increased amidst growing poverty amongst the people.

“Without any doubt, the new policy is capable of discouraging the growing culture of savings of cash in the bank.

“Furthermore, it is one policy that will further endanger the lives of the people, as robbery in homes and communities will escalate since no customer will be willing to accept illegal charges on their deposits and withdrawals,’’ he said.

Akpan, therefore, called for immediate reversal of the policy, in the interest of the generality of Nigerians and the country’s fluctuating economy.

He condemned the refusal of CBN to heed the call by the House of Representatives for the suspension of the policy, adding “Nigerian students shall, in the next 72 hours, commence immediate protest against the policy, should the bank fail again’’ said Akpan.  (PMnews)

CBN begins charges on withdrawals, deposits above N500,000

The Central Bank of Nigeria on Tuesday said that the nationwide implementation of the cashless policy will begin by March 2020.

The apex bank said this in a circular to all Deposit Money Banks in the country.

It said that implementation of the policy would signal the imposition of charges on deposits in addition to already existing charges on withdrawals.

According to the circular, the charges, which take effect from Wednesday (today) will attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments of amounts above N500, 000 for individual accounts.

For corporate accounts, the apex bank in the circular said that DMBs would charge five per cent processing fees for withdrawals and three per cent processing fee for lodgments of amounts above N3, 000, 000.

The statement, however, disclosed that the charge on deposits would apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the Federal Capital Territory.

It added that the implementation of the cashless policy would take effect from March 31, 2020.

To further promote the cashless policy and enhance the collection of applicable government revenues, the CBN also announced a review of the process for merchant settlement.

It added that with effect from Tuesday, September 17, the CBN had given approval for banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations.

A statement signed by the Director, Payments System Management Department, CBN, Sam Okojere, said a downward review of the Merchant Service Charge had been approved.

It said henceforth, the charges had been reduced from 0.75 per cent capped at N1, 200 to 0.50 per cent capped at N1, 000. (Punch)

CBN to ban $1.2b yearly forex for milk, other dairy products

The Central Bank of Nigeria (CBN) might have concluded plans to add milk and other dairy products to items on the foreign exchange restriction list with a view to boosting local production, and investment in ranches.

Insiders told The Guardian that CBN Governor Godwin Emefiele expressly told operators that milk and other dairy products would be restricted from access to foreign exchange both at the official and parallel markets if they refuse to invest in ranches, a move he said would quell the ongoing farmers-herders crisis.

While ranching has become a controversial issue, especially with the Federal Government’s proposed RUGA policy, the bank’s approach could intensify the struggle for land between herders and farmers. Operators might also see the CBN as foisting the policy on them without recourse to an existing business model and the socio-ethnic concerns milk and meat may incite.

Arising from two meetings the CBN held within the last one week with dairy products manufacturers on the need to backwardly integrate and start investment in ranches, operators expressed concerns about the bank’s use of monetary policies to address fiscal issues.

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They noted specifically that adopting ranching in other locations would be disruptive to their business strategy, and that the successful model for Nigeria would be driven by the conversion of pastoralist community breeds to better yielders through cross-breeding, milk collection, and the introduction of smallholder farming model.

The operators instead urged the CBN to ensure that the existing five per cent import duty on milk raw materials and access to forex remains for all dairy companies involved in backward integration with proof of on-ground facilities, milk collection, and usage.

They noted that powdered milk should remain a raw material or intermediary as this is used locally to produce several products consumed in the country. The capacity to produce powdered milk is not available in Nigeria, they said.

Powdered milk is produced by drying in a tower. This is very high on energy usage and other utilities which are not available

The former Minister of Agriculture and Rural Development, Audu Ogbeh, had said that milk worth $1.2 billion was being imported into the country yearly and that the yearly national dairy output and demand were estimated at 700,000 metric tonnes and 1,300 metric tonnes, leaving a supply gap of about 600,000 metric tonnes.

He explained that an average cow in the country produces less that one litre of milk per day, compared to other climes where a cow could produce 100 liters per day and that moving cows from place to place is a major problem affecting the animals and milk production in Nigeria.

There could be implications for consumers if the bank succeeds in its resolve to restrict access to foreign exchange for dairy products without a backward integration plan.

Consumers may have to pay more for the products. Since the demand gap for milk cannot be immediately met, it would encourage smuggling. Also, companies’ investment in the industry might be at stake and the renewed struggle for land between herders and farmers could worsen.

Furthermore, operators also complained of a lack of incentives for backward integration as only the little quantity of milk needed in the country is sourced locally. Again, other operators have only expressed the intention to invest but continue to import dairy products.

Among the local producers in the country, only FrieslandCampina WAMCO, the maker of Peak Milk and Three Crowns, has been able to effectively implement its pilot Dairy Development Programme (DDP) across 90 communities in Fashola, Iseyin, Oyo State, and in Ogun and Osun States.

Specifically, farmers under the programme this year have only been able to contribute 27,045 litres of milk in one day. FrieslandCampina WAMCO noted that over 17.5m litres of raw milk has been collected since the implementation of the DDP.

The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, disclosed that the association has always been at the forefront of resource-based industrialisation but urged caution in the implementation of the decision.

“We need to consider that the manufacturers have always supported the decision to backwardly integrate, and that is why our members are exploring local sourcing of raw materials. However, stakeholders have to agree on the right step to take. The effects of such a decision need to be considered to ensure that artificial scarcity does not occur due to the inability to meet local demands.

“There should be the right mix of measures and the right timing. There should be fair hearing from the stakeholders. The CBN should not carry out the action without adequately carrying manufacturers along,” he said.

Warning on the consequences of using a one-size-fits-all model to address trade issues, Muda Yusuf, Director-General of the Lagos Chamber of Commerce and Industry (LCCI) said the CBN could not use monetary policy to address fiscal issues when the business environment needs to be made conducive to operators.

According to him, “The starting point is to strengthen the capacity of domestic industries, enhance their competitiveness, and reduce their import dependence rather than using the same approach for all industries. CBN’s approach is also affecting investments in the country. Farming is not the responsibility of the companies.”

On his part, the Chief Executive Officer of Virgin Consulting UK and a consultant to a dairy multinational, Dr. Kunle Hamilton, decried the use of politics to determine economic decisions. He hinted that moves by some multinationals have actually empowered many farmers and catered to the milk demand of the country.

The Guardian


News : The CBN is very committed to making sure that people do not hawk the naira. Hawking and selling the naira

The CBN is very committed to making sure that people do not hawk the naira. Hawking and selling the naira on the streets is a criminal offence and punishable under the CBN Act of 2007.”


#shockingstatement #News

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