CBN Directs Banks to Implement New Circulars and Guidelines
The Central Bank of Nigeria (CBN) has issued a directive to Deposit Money Banks (DMBs), Licensed Non-interest banks, and other authorized dealers, emphasizing the need to adhere to the latest circulars and guidelines, thereby discontinuing the use of outdated versions.
This directive was articulated in a circular penned by Dr. Omolara Duke, the Director of the Financial Market Department at the CBN. The central bank highlighted its concerns regarding the persistent utilization of superseded circulars and guidelines, despite the release of updated versions.
Specifically, the circular pointed out that certain obsolete circulars/guidelines were still being employed even after they had been replaced by more recent documents. The CBN has therefore instructed deposit money banks, licensed non-interest banks, and other authorized dealers at the CBN Discount Window to comply with the current circulars/guidelines, which override the previous ones issued by the Bank.
Key updates include the circular “Circular to All Authorized Dealers: Access to the Discount Window, with Ref: FMD/DIR/PUB/CIR/001/006, dated October 7, 2022,” which supersedes several older documents related to access to the CBN Discount Window and the operation of Non-Interest Financial Institutions’ Instruments.
Additionally, the circular from October 25, 2023, concerning the Guidelines on Accessing the CBN Standing Deposit Facility, has revised previous stipulations by removing the cap on remunerable deposits.
Authorized dealers have been duly notified of these updates and are expected to adhere to the latest standards as set forth by the CBN to ensure compliance and operational efficiency within Nigeria’s banking sector.
