Allow us access banks’ autonomous window, BDCs appeal to CBN

President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe has urged the Central Bank of Nigeria (CBN) to immediately leverage the BDCs by allowing them access banks’ autonomous window and agency of international money transfer operators. This, he said, will allow them to provide liquidity in the retail end of the foreign exchange market and help stop the free fall of the Naira occasioned by forex scarcity in the country. Gwadebe also urged the CBN to reinstate its 2015 policy guidelines which allow the BDCs to effectively provide liquidity in the retail end of the market through the forex windows. The 2015 policy guidelines allow the BDC operators to access foreign exchange from the autonomous window of the commercial banks as well as act as agents for diaspora remittances. Gwadebe in his statement said BDCs are effective tools of the transmission mechanism of the CBN. “I quickly want to advise the apex bank to leverage on the BDCs and allow them access banks’ autonomous window and agency of international money transfer operators. Gwadebe, who accused some of the International Money Transfer Organizations (IMTOs) of diverting diaspora remittances, said the commercial banks revealed that they don’t even see most of these remittances. “Imagine you are the IMTO and then you are the one that will pay the beneficiary the naira, invariably, then I as well just give you the naira without paying you the dollar.’’ “Even the banks have been saying that they are not seeing the diaspora remittances that the fintechs have taken over. We had a meeting with the banks where we even tried to bring up the issue of diaspora remittances so that we can harness it and bring liquidity, but they said they don’t see it. That’s the truth of the matter, a lot of unlicensed online firms are in the process.’’ The black market rate fell to as low as N950/$1 last week, opening up about N200 disparity with the I&E window as demand continued to outstrip supply. Meanwhile, the official rate averaged N765/$1.

Nigeria’s inflation shoots to 24.08% in July -NBS

Nigeria’s headline inflation rate for the month of July 2023 increased to 24.08% from 22.79% recorded in June 2023. This was contained in the Consumer Price Index report by the National Bureau of Statistics.  According to the NBS, the figure represents a 1.29% percentage points rise from June headline inflation while on year-on-year basis, the inflation rate was 4.44 percentage points higher compared to the rate recorded in July 2022, which was 19.64%. The report noted that the increase was attributed to an increase in contributions of some items in the basket of goods and services at the divisional level. “These increases were witnessed in Food & Non-Alcoholic Beverages (12.47%), Housing, Water, Electricity, Gas & Other Fuel (4.03%), Clothing & Footwear (1.84%), Transport (1.57%), Furnishings & Household Equipment & Maintenance (1.21%), Education (0.95%) and Health (0.72%). “Others are Miscellaneous Goods & Services (0.40%), Restaurants & Hotels (0.29%), Alcoholic Beverages, Tobacco & Kola (0.26%), Recreation & Culture (0.17%) and Communication (0.16%). “On a month-on-month basis, the Headline inflation rate in July 2023 rose to 2.89%, this shows an average increase of 0.76 percentage points on the general price level relative to June 2023,” it said. The report also noted that the percentage change in the average Consumer Price Index for the twelve months ending July 2023 over the average of the CPI for the previous twelve months was 21.92%, showing a 5.17% increase compared to the 16.75% recorded in July 2022. “The food component sub-index for July 2023 increased by 26.98% on a year-on-year basis; this was 4.97% points higher relative to the rate recorded in June 2022 (22.02%). “The rise in Food index on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs,” the report added. The further observed that, the Food inflation rate on a month-on-month basis, in July 2023 rose to 3.45%, this was 1.06% points higher compared to the rate recorded in June 2023 (2.40%). “The average annual rate of Food inflation for the twelve months ending July 2023 over the previous twelve-month average was 24.46%, indicating an increase of 5.71% points from (18.75%) recorded in July 2022. “Core inflation, which is All items less farm produce, that is excluding the prices of volatile agricultural produce, stood at 20.47% in July 2023 on a year-on-year basis; it rose by 4.41% when compared to the 16.06% recorded in July 2022. “This was driven by an increase in prices of Passenger Transport by Air, Passenger Transport by Road, Vehicle Spare parts, Medical Services, Maintenance and repair of personal transport equipment etc. On a month-on-month basis, the Core inflation rate stood at 2.11% in July 2023. “This shows an increase of 0.34% when compared to the 1.77% recorded in June 2023. The average annual core inflation rate for the twelve-month ending July 2023 over the previous twelve-month average stood at 18.84%; this was 4.31% points higher than the 14.53% recorded in July 2022. “The inflation rate in July 2023 for Urban consumers was 25.83% on a year-on-year basis. This indicated an increase of 5.74% points higher compared to the 20.09% recorded in July 2022,” it said. Also, the Urban month-on-month inflation rate rose to 3.05% in July 2023, which was 0.75% points higher compared to June 2023 (2.31%). The report said the twelve-month average for the Urban inflation rate ending July 2023 over the corresponding twelve-month was 22.87%. This was 5.59% points higher compared to the 17.29% reported in July 2022. “Similarly, the inflation rate for rural consumers in the month of July 2023 was 22.49% on a year-on-year basis; this was 3.26% points higher compared to the 19.22% recorded in July 2022. “On a month-on-month basis, the Rural inflation rate in July 2023 was 2.74%, up by 0.78% points compared to June 2023 (1.96%). “The twelve months average for the Rural inflation rate ending July 2023 over the corresponding twelve-month was 21.04%. This was 4.79% points higher compared to the 16.25% recorded in July 2022. “The analyses of the states show that the all-item index for July 2023, on a year-on-year basis was highest in Kogi (28.45%), Lagos (27.30%), Ondo (26.83%); while the states with slowest rise in headline inflation on a year-on-year basis were Borno (20.71%), Jigawa (20.85%) and Sokoto (20.92%) during the month. “On a month-on-month basis, July 2023 headline inflation recorded the highest increase in Kogi (4.99%), Abia (4.12%), and Akwa Ibom (4.07%). On the other hand, Jigawa (0.16%), Taraba (1.09%) and Yobe (1.10%) recorded the slowest rise on month-on-month inflation. “State-level analyses of the food index in July 2023, on a year-on-year basis, showed the highest increases in Kogi (34.53%), Lagos (32.52%) and Bayelsa (31.31%). While Jigawa (20.90%), Sokoto (21.63%) and Kebbi (22.45%) recorded the slowest rise in Food inflation during the month. Ends

CBN resumes OMO on system liquidity

The Central Bank of Nigeria (CBN) is set to suck in some liquidity from the system as it last week resumed the Open Market Operation (OMO). The immediate result was system liquidity slumping 51.8 percent week-on-week (W/w) to N33.8 billion. Analysts at Afrinvest attest that the reduction was a result of the auctions conducted by the central bank at the OMO window and Treasury Bills (T-Bills) front. “Nonetheless, OPR and Overnight (OVN) rates closed the week lower at 2.0 percent and 2.8 percent respectively from 5.8 percent and 6.8 percent”, said analysts at Afrinvest. At the bond market, the bearish sentiment in the domestic bonds market extended last week, as average yield across tenors rose 21 basis points (bps) w/w to 13.3 per cent. The most selloffs were seen on short-term bonds as the average yield increased 51bps w/w. Similarly, the average yield on the mid-and long-term bonds advanced 21bps and 13bps w/w, respectively. The domestic equities market sustained weekly gains, with the All Share Index (ASI) going up 0.2 per cent w/w to close at 65,325.37 points. Consequently, market capitalisation increased N92.7 billion to N35.6 trillion, while Year-To-Date (YTD) return grew to 27.5 per cent (previously 27.2 per cent). Activity level faltered as average volume and value traded declined by 32.4 per cent and 15.3 per cent w/w to 348.2 million units and N5.0billion respectively. Brent crude oil saw an uptick of 0.8 per cent w/w, to reach $86.88/bbl. This momentum was despite renewed economic concerns in China and a large inventory buildup in the US. Meanwhile, Nigeria’s foreign reserves plunged 0.2 per cent w/w, reaching $33.9 billion as of August 10th, 2023… On the global scene, last week was marked by the absence of substantial positive catalysts, the MSCI World Index experienced a 0.8 per cent w/w decline. In the US, the S&P 500 and NASDAQ indices fell 0.4 per cent and 2.0 per cent w/w respectively. Analysts at Afrinvest said the drop was influenced by pressure on bank shares, triggered by Moody’s decision to downgrade the credit ratings of 10 small- to mid-sized banks.

7 years after, CBN publishes consolidated financial statements

The financial statement comes two weeks after ex-CEO of Financial Reporting Council of Nigeria’s Jim Obazee was appointed by President Bola Tinubu as special investigator to look into the books of the Apex Bank.Godwin Emefiele was suspended by President Tinubu with Folashodun Shonubi appointed as acting Governor.  After a seven-year hiatus, the Central Bank of Nigeria (CBN) has published its financial report for the year ended December 31, 2022. After a seven-year hiatus, the Central Bank of Nigeria (CBN) has broken its silence, revealing consolidated financial statements for the fiscal year ending on December 31, 2022. This marks the first financial report published by the CBN since 2015. The long-awaited financial statement emerges in the wake of recent developments, which is notably as former CEO of the Financial Reporting Council of Nigeria, Jim Obazee’s assumption of the role of special investigator, appointed by President Bola Tinubu. Obazee’s task is to meticulously examine the financial records of the CBN. This move follows the suspension of Godwin Emefiele, with Folashodun Shonubi stepping in as the acting Governor. Spanning the years 2016 to 2022, the Consolidated Financial Statements have finally seen the light of day. These statements disclose a net profit of N65.63 billion for this period. Furthermore, the CBN extended a substantial N23.18 trillion loan to the Federal Government through the Ways and Means mechanism. Within the same timeframe, the bank’s group performance has been impressive, showcasing a commendable profit of N103.85 billion during the identical period. “The financial results for the year demonstrate a substantial achievement. Both the group and the bank independently reported profits of N103,854 million and N65,626 million, respectively. (Comparatively, the figures for 2021 were N75,125 million and N31,044 million),” the official report articulates. The stipulations of the Fiscal Responsibility Act 2011 dictate that 20 percent of the bank’s net income will be allocated to retained earnings. The remaining balance will be disbursed to the federal government of Nigeria. In compliance with the CBN Act 2007, the bank’s annual report should be released within a span of two months following the closure of each fiscal year. “The mandate states that the Bank shall provide a certified copy of its annual accounts, audited by a qualified Auditor, to both the National Assembly and the President within this stipulated time frame,” the report highlights. Delving into the expenses, the CBN incurred a total of N888.3 billion in operating costs. A meticulous breakdown discloses that N346.2 billion resulted from foreign exchange revaluation losses. Additionally, N155.5 billion was expended on rebate allowances from the RT 200 and Naira4Dollar initiatives. These policies were strategically crafted to attract foreign exchange inflows. “Rebate expenses encompass the financial outlay associated with the RT200 and Naira 4 Dollar schemes. These initiatives were introduced by the Bank to amplify foreign currency inflow, diversify the channels of FX inflow, elevate non-oil exports, ensure the stability and longevity of FX inflows, and provide support for companies oriented towards exports, facilitating their expansion of export activities and capabilities,” elucidates the comprehensive report.

CBN approves Zenith, First Bank, 11 others as Cheque Printers, Personalisers

The Central bank of Nigeria (CBN) has accredited 13 firms as Cheque Printers and Cheque Personalisers in Nigeria. According to a circular titled: Circular to Deposit Money Banks, Cheque Printers/Personalisers and other stakeholders on the accreditation of cheque printers and signed by Director, Banking Services Department of the CBN, Sam O. Okojere, out of the 13, 7 are Deposit Money Banks (DMBs) while the other 6 are printing companies.  Zenith Bank, First Bank, Ecobank, Wema Bank, Stanbic IBTC, Keystone Bank, and Providus Bank were approved as Cheque Personalisers as well as Superflux International Limited, Tripple Gee and Company Limited, Yaliam Press Limited, Marvelous Mike Press Limited, Kas Arts Services Limited, and Papi Printing Company Limited. “In furtherance of its mandate to ensure an efficient payment and settlement system, the Central Bank of Nigeria, in collaboration with the MICR Technical Implementation Committee (MTIC) conducted the accreditation of Cheque Printers and Cheque Personalisers, in line with the NICPAS qualification criteria,” the Apex Bank said. The regulator further said all the accredited printers and personalisers have been duly notified and certificates issued.

Tinubu, CBN, and Nigeria’s economy

The resurgence of the Gestapo era last witnessed during General Sani Abacha’s jackboot regime is gradually staging a comeback in our democratic dispensation. Nigeria witnessed the abrasive invasion of the National Assembly by the Nigerian secret police, the Department of State Security Service (DSS), under former President Muhammadu Buhari. The President though was not in the saddle at the time, was away on medical treatment abroad. His Vice President, who acted as the President, Professor Yemi Osinbajo held sway. The Vice President didn’t blink an eyelid sacking the Director General of the agency, Lawal Daura, for the assault, and desecration of the symbol of democracy. The vice president considered the incident a misnomer that should not be allowed to fester. The northern political elite never forgave Osinbajo for that singular action. Their oligarchical chauvinism made sure Osinbajo never acted in presidential capacity till the regime timed out. Power was no longer transmitted to him even when the president was on official or medical trips. July 25, 2023, reenacted the ugly DNA of the DSS. The agency had arraigned Godwin Emefiele, the suspended governor of the Central Bank of Nigeria, in a high court in Lagos, accused of illegal possession of firearms and ammunition by the Federal Government. Recall that the DSS in November/December 2022 had declared Godwin Emefiele wanted for terrorism sponsorship. The hide and seek game came to a temporary halt after the DSS withdrew their operatives from the security details of the governor, making him vulnerable, but the former Chief of Defence Staff, General Lucky Irabor, provided him a succour, replacing his security details with military personnel. We all know it was just a temporary reprieve as those who wanted their pound of flesh of Emefiele were waiting. About a week ago, a court of competent jurisdiction ruled and ordered the DSS to either arraign Emefiele or release him from their detention. Emefiele until his arraignment has been incarcerated for 36 days. The agency, a few hours after the court order, announced that Godwin Emefiele has been charged to court. However, on the day of arraignment, the DSS threw decency to the winds, engaging a sister agency in supremacy. It was not only deplorable, but condemnable. The judge had ruled and committed Godwin Emefiele to bail of N20m and one surety with landed property within the jurisdiction of the court. The judge also ordered that Emefiele be kept in the custody of the Correctional Service pending when the accused will perfect his bail. The DSS opposed that, claiming to have been directed by ‘orders from the above’ to take Emefiele back into custody. Correctional Service personnel were disallowed from carrying out the court order, as the squadron leader of the Correctional operatives was forcefully rough-handled. It took the directive of the Comptroller General of the Service who ordered his operatives to stand down and leave the court premises to bring a semblance of sanity after securing Emefiele.  The charges against Emefiele are purely civil which does not warrant the show of force and shame exhibited by the DSS. Many non-state actors have been seen brazenly brandishing sophisticated weapons, but none has been seen treated as Emefiele. This is not defending Godwin Emefiele for whatever allegation brought against him, but the treatment meted out to a public officer of his stature, who has meritoriously served his country is unbefitting. Is Godwin Emefiele’s sins more than a pistol and 123 rounds of ammunition found in his house? Are these exhibits enough to make him a terrorist or a sponsor of terrorism? Godwin Emefiele may have erred while doing his tenure at the CBN, but the treatment being meted out to him does not justify the weight of the allegation. It is also obvious that some politicians have sworn not to forgive Emefiele and are bent on destroying him. From the bestial behavior of the DSS operatives, it was obvious that Emefiele had been marked for destruction for daring to redesign the Naira at the onset of the 2022/23 political campaigns. President Bola Tinubu while campaigning had cried foul, accusing the suspended CBN governor of targeting him for failure with the redesign. He never hid his disdain for Emefiele’s actions. Peradventure Godwin Emefiele had not dabbled into politics, would President Tinubu have felt that way? But the President on every occasion labeled the CBN as a mess under the suspended governor. He alleged Emefiele had perpetrated arbitrage and rent-seeking. It was therefore obvious; he would not work with Emefiele. Godwin Emefiele too may have probably resigned, knowing that the political class, particularly President Tinubu, viewed his Naira redesign policy as a vendetta against his frustrated political ambition, thus it is now their time to take their pound of flesh. He should have resigned immediately when President Tinubu won the election. Whether his resignation would have been honoured or not is another debate altogether. The political class should have exercised restraint considering the economic implication of what Emefiele symbolises, the CBN. How would the international investing community see us – disobedient to court rules? A CBN governor humiliated because of petty political miscalculation or skirmish? Yet, we are a nation hungrily looking for investors. The economy is on its knees, the Naira is battered, and insecurity is devouring us. Emefiele’s intransigence is inconsequential to the barrage of challenges facing the nation. President Tinubu who is acclaimed to possess a large political heart of forgiveness should thread softly about Godwin Emefiele. He promised renewed hope, and to rule Nigeria with the rule of law. The Incident at the Lagos High court was barbaric, anti-rule of law, and despotic. President Tinubu’s golden silence while the drama lasted is suspect, belying his promise. His silence affirms the saying going around now: ‘Baba so pe’, meaning Baba said so. The economy is troubled, citizens are agonised by his economic reforms. Assuaging and giving Nigerians comfort should be his paramount desire, not missteps of an individual. The show of shame by the DSS operatives, witnessed globally,

Tinubu employs special investigator to probe Emefiele, CBN’s activities

President Bola Tinubu has taken a significant step in the fight against corruption by appointing Jim Obazee as a Special Investigator. Mr. Obazee’s primary task is to conduct a thorough investigation into the activities of the Central Bank of Nigeria and other Related Entities. This decision, as stated in a letter dated 28 July, is firmly grounded in Section 15(5) of the Constitution of the Federal Republic of Nigeria (as amended), underscoring the administration’s commitment to combating corruption. The appointment of Mr. Obazee is already in effect, and he will be reporting directly to President Tinubu. The specific terms of his engagement as a special investigator will be communicated to him in due course, according to the letter signed by the president. It is worth noting that Mr. Obazee brings significant expertise to this role, having previously served as the chief executive officer of the Financial Reporting Council of Nigeria (FRCN). Tinubu also requested regular updates from Mr. Obazee on the progress of the assignment. In the same letter, he directed Mr. Obazee’s attention to his earlier directive to suspend the CBN governor, Godwin Emefiele, on 9 June. This move indicates a keen interest in ensuring a comprehensive investigation into the matter. Regarding the suspended CBN governor, there have been subsequent developments. After being suspended by Mr. Tinubu, Godwin Emefiele was arrested at his Lagos residence by operatives of the State Security Service (SSS). He was subsequently transported to Abuja for further proceedings. The SSS is prosecuting him for allegedly possessing an unregistered firearm. However, last week, the Federal High Court in Abuja granted him bail. Despite being granted bail by the court, Mr. Emefiele was re-arrested by the SSS on the court premises, leading to a confrontation between SSS officers and personnel from the Nigerian Correctional Centre, who attempted to take him into their custody. The reason for Mr. Emefiele’s continued detention has not been publicly disclosed by the secret service. This ongoing situation has sparked considerable interest and concern, and the appointment of Jim Obazee as Special Investigator is expected to shed light on the matter. With his expertise and the mandate given by President Tinubu, the investigation aims to bring transparency and accountability to the activities of the Central Bank of Nigeria and associated entities.

CBN, CBE collaborate to establish Nigeria-Egypt FinTech Bridge

The Central Bank of Nigeria (CBN) and the Central Bank of Egypt (CBE) have signed a memorandum of understanding (MOU) to establish a Nigeria-Egypt FinTech Bridge. The signing ceremony, which took place at the Seamless North Africa 2023 conference at the Egypt International Exhibition Center, Cairo, on July 17 – 18, 2023, comes after a series of engagements on issues around payment systems, financial technology, and financial inclusion in Africa. Speaking at the event, the CBN Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad, who signed on behalf of the CBN, said that the Bank was extremely excited by the partnership with the Central Bank of Egypt, which followed several months of engagement on payments, fintech and financial inclusion. “We look forward to cultivating an innovative space for fintech startups and entrepreneurs in Egypt and Nigeria to accelerate financial inclusion, deepen our payment systems and drive economic growth across the African Continent,” Mrs. Ahmad declared. Also speaking, the Deputy Governor of the Bank of Egypt, Mr. Rami Aboulnaga, commended the MOU and expressed optimism that the partnership would yield the desired expectation. The groundbreaking partnership between the apex banks of the two largest economies in Africa encompasses a broad range of collaborative initiatives, including joint regulatory innovation projects, coordinated licensing and supervisory frameworks, information sharing, fintech cross referrals and talent development. The conference was hosted by the Central Bank of Egypt and had in attendance over 4,000 policymakers, payment service providers, financial institutions and technology startups from Egypt, Nigeria and across the African continent.

Bad Loans: CBN warns of sanctions against bank directors

The Central Bank of Nigeria (CBN) has said it would sanction any bank directors with loans that remain non-performing for more than 12 months. The warning is contained in a new corporate governance guideline for commercial banks, financial holding Companies (FHCs), merchant banks, and non-interest and payment service banks signed by Director, financial policy and regulation in the CBN, Chibuzo Efobi. The new guidelines which are expected to take effect on August 1, 2023, will supersede all previous codes, circulars, and related directives on corporate governance issued by the CBN. The apex stated that any director whose credit facility or that of his/her related interests remains non-performing in the banking subsidiary of an FHC, for more than one year, shall cease to be on the Board of the Financial Holding Company (FHC). “Shall be blacklisted from sitting on the Board of such a banking subsidiary or that of any other financial institution under the purview of the CBN,” the guidelines stated. The CBN said no loan/advance and interest thereon to a director of an FHC by the banking subsidiary shall be written-off without its prior approval. “A subsidiary of the FHC, which renders services to the FHC may extend similar services to other entities within the Group that so desire, on the same terms and conditions, the guidelines stated. It says all intra-group transactions shall be conducted at arm’s length and in compliance with the extant laws and regulations guiding the operations of the entities The apex bank’s guideline also prescribed that all services between an FHC and its subsidiaries will be guided by Service Level Agreements (SLAs) and/or shared services arrangements in line with the CBN Guidelines for Shared Services Arrangements for Banks and Other Financial Institutions. Under protection of shareholders’ rights, the guidelines stated that except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one FHC. It says except with the prior written approval of the CBN, no FHC or any of its director, shareholder or agent shall enter into an agreement which results in: a change in the control of the FHC, the transfer of shareholding of 5 per cent and above in the FHC; and/or an increase in shareholding to 5 per cent or more in the FHC. The CBN said its prior approval and no objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five per cent (5 per cent) and above. “Banks and financial holding companies are invited to note the responsibilities imposed on their boards by these guidelines and especially on the executive compliance officers (where applicable)”, the circular stated. The Financial Reporting Council (FRC) of Nigeria in 2019 issued the Nigerian Code of Corporate Governance (hereinafter referred to as “NCCG 2018”) as the single Corporate Governance Code for the country. The guidelines stated that the government’s direct and indirect equity holding in a bank shall not be more than ten percent (10 percent), which shall be divested to private investors within a maximum period of five years from the date of investment. Get our approval before acquiring a 5% stake in any bank, CBN tells investors The Central Bank of Nigeria (CBN) has said that any investors planning to acquire a five percent stake in any bank operating in the country will need to obtain prior approval and no objection from the apex bank. The new Corporate Governance Guidelines for Commercial, Merchant, Non-Interest, and Payment Service Banks released by CBN over the weekend, the apex bank said that no individual or group of individuals or corporate entities shall own controlling interest in more than one bank. Under the protection of shareholder’s rights provisions, the new regulations attempt to address recent events in the capital market affecting some commercial banks in the country. The guidelines specifically said, “CBN’s prior approval and No Objection shall be sought and obtained before any acquisition of shares of a bank (including through the capital market), that would result in equity holding of five percent and above, by any investor.” “Except where prior approval of the CBN is granted, no individual, group of individuals, their proxies or corporate entities shall own controlling interest in more than one bank,” The new regulation also states that where the apex bank has an objection to any of the acquisition, the notice of the objection must be communicated to the bank. The bank then has 48 hours to notify. “Where the CBN has an objection on any acquisition as stated in Section 20.2 notice of the objection shall be communicated to the bank, and the bank shall notify such investor(s) within forty-eight (48) hours.” For government ownership in the bank the protection of shareholders rights regulation also said “Government’s direct and indirect equity holding in a bank shall not be more than ten per cent (10%), which shall be divested to private investors within a maximum period of five years from the date of investment,” it added. For existing investments above five years, the central bank said the bank shall within two years from the effective date of this Guideline, comply with the provision.” The central bank regulation also addresses Financial Holding Companies (FHC), and activities around mergers and acquisitions. According to the regulation, no director or shareholder can change control of a bank without the prior approval of the bank. It also does not allow the transfer of 5 per cent and above of a bank to any shareholder without the prior approval of the CBN. No FHC or any of its directors, shareholders, or agents shall enter into an agreement that results in a change of control of the holding. It said CBN’s prior approval and no objection shall be sought and obtained, before any acquisition of shares of an FHC by an investor (including through the capital market), that would result in equity holding of five

Failed Transactions: CBN returns N115.45bn, $22.7m to bank customers

The Central Bank of Nigeria (CBN) says a total of N115.45 billion and about $22.7 million have been refunded to customers of banks in the last 10 years after receiving complaints over failed transactions. The regulatory bank said it received 35,453 complaints from bank customers over unsuccessful transactions carried out on their various electronic channels. According to the CBN official from the Consumer Protection Department, Elachi Samuel, the bank handled about 33,437 consumer-related issues during the period under review. He stated this while making a presentation at a one-day sensitization fair for stakeholders on “Promoting alternative payment channels as tools for financial inclusion.” He said “The CBN, in trying to engender confidence in the financial system, always brings out policies and activities to protect consumers. This is to ensure that they do not lose their money while conducting financial transactions. “Since the establishment of the Consumer Protection Department of the Central Bank of Nigeria in 2013 till May 2023, we received a total of 35,453 complaints relating to failed bank transactions. Out of these complaints, we resolved 33,437. “During this period, the sum of N115.45 billion was refunded to customers. The sum of $22,794,184.87 was also refunded to customers.” He asked bank customers to first report their disputes to financial institutions for prompt and amicable resolution before filing further complaints with the apex bank if they were dissatisfied with the institutions’ conduct. In his opening remarks, the CBN acting Director of Corporate Communications, Isa AbdulMumin stated that the fair was designed to allow members of the public to interact with the regulatory bank on its policies and strategic interventions for the country’s long-term economic development. He said the CBN has shown the most ardent commitment to helping businesses and promoting diversification through a variety of interventions in agriculture, health, manufacturing, and other vital areas of the economy as a responsible and responsive corporate citizen.