Following the Naira Scarcity in Nigeria, GoldenNewsNg has compiled Latest CBN News and Update on Naira Notes Today 12th April 2023.
Naira Redesign Was Done In The Interest Of Nigerians – CBN Declares
During the 34th Enugu International Trade Fair, the Central Bank of Nigeria (CBN) Acting Director of Corporate Communications, Dr. Abdulmumin Isa, stated that the naira redesign policy was implemented in the best interest of Nigerians and was a step in the right direction.
He also mentioned that the redesign led to stability in the exchange rate and supported security agencies in combating banditry and ransom-taking.
Mr. Esu Imoh, Assistant Director of Corporate Communications, represented the CBN Director and highlighted that the redesign adheres to international best practices. In response to the growing usage of online banking facilities by Nigerians, the CBN confirmed that the Nigerian payment system infrastructure is sufficiently robust to handle the increasing pressure.
However, Mr. Jasper Nduagwuike, the President of Enugu Chamber of Commerce, Mines, Industries, and Agriculture, expressed concern over the recent increase in interest rates to 18 percent, which was an aggressive move by the CBN to contain Nigeria’s inflationary pressure. He cautioned that this high interest rate regime could negatively impact businesses’ access to bank credit.
Although they commended the CBN’s measures to rebuild stronger business confidence and ensure stability in the economy, particularly in the financial/banking sector, Mr. Nduagwuike advised the CBN to utilize the grace period for full implementation of the naira redesign and cashless policy as directed by the Supreme Court of Nigeria.
CBN lists gains of naira redesign
The Central Bank of Nigeria (CBN) has stated that the recent redesign of some Naira denominations is positively impacting the country’s economy, supporting macroeconomic fundamentals, moderating inflation, and increasing financial inclusion rates.
The policy is in line with international best practice and has also helped security agencies combat banditry and ransom-taking in the country.
The CBN is encouraging Nigerians to embrace alternative payment channels, such as eNaira, USSD, and internet banking facilities, as the world moves towards alternative payments.
Under the Anchor Borrowers’ Programme (ABP), the bank has sponsored over 4.6 million smallholder farmers across 21 agricultural commodities on 6.02 million hectares of farmland.
The Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) commended the CBN for its policy measures to ensure stability in the economy, particularly in the financial and banking sectors
CBN Set to Close Millions of Bank Accounts in GTB, Access, Zenith, First Bank, and Others- See Reasons
The Central Bank of Nigeria (CBN) has recently made an announcement to address the increasing incidents of fraud in the financial sector. As part of their efforts to combat this problem, the CBN has planned to close millions of bank accounts that are not linked to a Bank Verification Number (BVN).
CBN tight monetary policy affecting banks’ profits, says operator
The CEO of Cowry Asset Management, Johnson Chukwu, has said that more Nigerian banks will pursue cross-border expansion due to the Central Bank of Nigeria’s adoption of a hawkish monetary stance.
The CEO explained that the hike in the benchmark interest rate has led to higher lending yields and consequently eaten into banks’ net interest margins, spurring Nigerian banks to move into other African markets to benefit through risk diversification and greater profit opportunities for shareholders.
The adoption of Holdco structures by many local lenders will help swathe the increasing competition from fintech and diversify their earnings in the face of the present tight monetary policy regime, thus enhancing their topline.
The banking sector has seen an upsurge due to the increase in transactions electronically and through several payment options.
Ex-CBN Manager Accused of N39m fraud lands in prison
Etifit Collins Maurice, a 59-year-old former assistant manager at the Central Bank of Nigeria, has been arrested by police in Lagos for allegedly defrauding a businessman of N39m ($94,000) under false pretenses. The police say Maurice promised to help the businessman change the sum to its naira equivalent but instead converted it to his own use. After several months without hearing from him, the businessman petitioned the police, who arrested Maurice. He has been charged with four counts, including obtaining money under false pretense, issuing a dud cheque, and stealing. Maurice pleaded not guilty and was granted N2m bail with two sureties.
Pay special attention to credit risk, CBN instructs financial institutions
The Central Bank of Nigeria (CBN) has directed financial institutions to pay special attention to credit risk, operational risk, legal risk, liquidity risk, reputation risk, and compliance with rules for combating money laundering, financing of terrorism and proliferation financing.
This is in line with a regulatory framework for agent banking published on the CBN’s website. The framework specifies risk management requirements for financial institutions, including monitoring and supervising their agents, establishing liabilities and responsibilities of agents, conducting due assessments of their creditworthiness, and complying with data protection laws and regulations.
The CBN stated that financial institutions should have a business continuity plan to mitigate any disruption or gaps and ensure ongoing monitoring and control of agent banking operations.
Agent banking allows banks and other financial institutions to provide banking and other financial services to the public through third parties. The initiative has been successful in achieving financial inclusion targets, resulting in a significant and growing portion of financial transactions being conducted through agents.
CBN Set to Close Millions of Bank Accounts in GTB, Access, Zenith, First Bank, and Others- See Reasons
The Central Bank of Nigeria (CBN) has recently made an announcement to address the increasing incidents of fraud in the financial sector. As part of their efforts to combat this problem, the CBN has planned to close millions of bank accounts that are not linked to a Bank Verification Number (BVN).
CBN tight monetary policy affecting banks’ profits, says operator
The CEO of Cowry Asset Management, Johnson Chukwu, has said that more Nigerian banks will pursue cross-border expansion due to the Central Bank of Nigeria’s adoption of a hawkish monetary stance.
The CEO explained that the hike in the benchmark interest rate has led to higher lending yields and consequently eaten into banks’ net interest margins, spurring Nigerian banks to move into other African markets to benefit through risk diversification and greater profit opportunities for shareholders.
The adoption of Holdco structures by many local lenders will help swathe the increasing competition from fintech and diversify their earnings in the face of the present tight monetary policy regime, thus enhancing their topline.
The banking sector has seen an upsurge due to the increase in transactions electronically and through several payment options.
