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Tag: CBN

  • Naira Extends Weekly Rally, Appreciates to ₦1,386.55/$ on CBN Reforms

    Naira Extends Weekly Rally, Appreciates to ₦1,386.55/$ on CBN Reforms

    he naira closed the week on a stronger note on Friday, appreciating further against the U.S. dollar at the official market to trade at ₦1,386.55/$1.

    Data published on the official website of the Central Bank of Nigeria (CBN) showed that the local currency gained ₦10.43, representing a 0.7 per cent appreciation compared with Thursday’s closing rate of ₦1,396.99/$1.

    The naira has remained relatively stable in recent days, buoyed by ongoing CBN reforms, recording a week-long appreciation trend.

    Earlier in the week, the currency traded at ₦1,418.95 on Monday, ₦1,401.22 on Tuesday, and ₦1,400.47 on Wednesday.

  • FCMB jumps PBT 71% to N111.9bn in 2024

    FCMB jumps PBT 71% to N111.9bn in 2024

    First City Monument Bank has recorded a 71 per cent rise in earnings to post N111.9 billion in gross profit for year end, December 31, 2024.

    The Nigerian Exchange Ltd confirmed the bank’s performance record through a corporate statement.

    The growth was impacted by a 56.6 per cent decline in revaluation income and a 1.9 per cent fall in Net Interest Margin.

    The Group’s gross revenue stood at N794.4 billion for December 2023 end, marking a 53.9 per cent jump from N516.4 billion in the previous year.

    This growth was driven by a 75.2 per cent rise in interest income and an 8.7 per cent increase in non-interest income.

    Non-interest income growth was constrained by a 55.7 per cent year-on-year drop in other gains, from N89.3 billion to N39.6 billion.

    Net interest income rose by 27.6 per cent, from N176.6 billion in the prior year to N225.3 billion by December 2024.

    Yield on earning assets improved to 16.2 per cent. However, Net Interest Margin declined by 1.9 per cent due to a 122 per cent rise in funding costs.

    Operating expenses increased by 45.7 per cent, year-on-year, to N229.1 billion.

    This was driven by higher personnel costs, regulatory costs, foreign currency-linked expenses, and inflationary pressures.

    The cost-to-income ratio closed at 59.9 per cent for the period ending December 2024.

    Net impairment loss on financial assets declined by 30.7 per cent year-on-year to N41.2 billion, down from N59.5 billion.

    Consequently, the cost of risk lowered to 1.8 per cent from 3 per cent.

    The Group’s divisions recorded year-on-year growth, with consumer finance rising by 83.5 per cent and investment management by 27.9 per cent, while the banking group declined by 7.7 per cent.

    Group earnings remained diversified, with non-bank subsidiaries accounting for over 30 per cent of profits.

    Loans and advances increased by 28 per cent year-on-year from N1.84 trillion to N2.36 trillion at the end of December 2024.

    Total assets grew by 59.5 per cent year-on-year, from N4.42 trillion to N7.05 trillion at the end of December 2024.

    Customer deposits rose by 39.4 per cent year-on-year, reaching N4.30 trillion from N3.08 trillion by December 2024.

    On recapitalisation, the statement read, “In line with the CBN’s directive, the Group focused on strengthening the banking franchise and building a more resilient balance sheet in 2024.

    “We completed the first phase of our capital-raising programme, securing N144.6 billion through a public offer. This doubled issued shares from 19.8 billion in 2023 to 39.6 billion in 2024, impacting EPS.

    “Subsequent phases of FCMB Group’s capital programme are in progress to ensure First City Monument Bank Limited meets the minimum capital requirement to retain its International Banking License.

    “The capital injection has enabled First City Monument Bank Ltd. to secure its National Banking License and raise its capital adequacy ratio to 18 per cent.

    “This has created essential buffers to support asset creation in select segments.”

  • Tinubu Unveils 2025 Budget

    Tinubu Unveils 2025 Budget

    President Bola Ahmed Tinubu has presented the 2025 budget proposal to the National Assembly, marking a pivotal step in his administration’s efforts to stabilize and transform Nigeria’s economy. 

    Dubbed “The Budget of Restoration: Securing Peace, Rebuilding Prosperity,” the plan lays out strategic investments to tackle economic challenges and rebuild critical sectors.  

    The proposed N47.90 trillion expenditure includes key allocations for defense, infrastructure, education, and healthcare.

    READ ALSO: Insecurity: Nigerians Paid N2.3trn as Ransom in One Year – NBS Report

     Tinubu emphasized bolstering security, improving infrastructure, and fostering self-sufficiency in agriculture. Revenue projections stand at N34.82 trillion, while the budget deficit is pegged at N13.08 trillion.  

    The president highlighted significant milestones achieved under the 2024 budget, such as a 3.46% economic growth rate in Q3 and robust foreign reserves nearing $42 billion. 

    For 2025, the focus shifts to reducing inflation, enhancing trade, and driving industrial output.  

    With plans to reduce dependency on food and oil imports while boosting exports, Tinubu assured Nigerians of a brighter future, calling for collective action to overcome challenges and build a more prosperous nation.

  • Old, dirty Naira notes: House of Reps demands immediate replacement by the CBN

    Old, dirty Naira notes: House of Reps demands immediate replacement by the CBN

    The House of Representatives has urged the Central Bank of Nigeria (CBN) to ensure wide circulation of new notes of N200, N500 and N1000 as well as begin a gradual withdrawal of the old notes from circulation.

    This call was made after a motion raised by Adam Victor Ogene (LP, Anambra), demanding that the Central Bank of Nigeria (CBN) should kick-start awareness programmes for Nigerians to be aware and prepare for the deadline of December 31, 2024.

    Contributing to the discussion, the Labour Party lawmaker recounted the hardship, frustration, controversy and chaotic situation the implementation of the policy earlier caused in 2023.

    He added that the scarcity of the new currency notes led to untold hardship in the nation as a result of the CBN’s inability to supply new versions of the changed currency notes.

    “Going by the Supreme Court’s subsequent ruling and order, the N200, N500 and N1000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation as from January 1, 2025,” the lawmaker said.

    In 2022, a controversy erupted in Nigeria after the Central Bank of Nigeria (CBN), under the leadership of then-Governor Godwin Emefiele, announced plans to redesign and introduce new versions of three denominations of banknotes: N200, N500, and N1000.

    The existing notes were to remain valid until January 31, 2023.

    The move had sparked widespread debate and discussion across the country.

    According to Emefiele, the decision was reached due to persisting concerns around the number of naira notes outside the banking system.

    Over one year after, findings showed that the CBN policy which was reported to have gulped over N74 billion failed.

  • CBN Clarifies Status of Cybersecurity Levy

    CBN Clarifies Status of Cybersecurity Levy

    The Central Bank of Nigeria (CBN) has denied reintroducing the cybersecurity levy which collection was recently suspended.

    The levy, initially mandated at 0.5 percent for banks to collect on behalf of the National Security Adviser, was put on hold following backlash from the public and a directive from the Federal Executive Council.

     

    Despite ongoing rumors suggesting the levy’s reintroduction, the CBN firmly denied these claims in its recent Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the 2024-2025 fiscal years.

     

    In a circular issued on September 17, the CBN addressed misunderstandings surrounding its guidelines, stating that the document reflects prior policies up to December 31, 2023.

     

    The CBN reiterated that the cybersecurity levy, suspended in May 2024, is no longer applicable, and stressed the importance of accurate reporting regarding its policies. The bank encouraged stakeholders to seek clarification before disseminating information.

     

  • CBN to maintain controversial cybercrime levy amid economic hardship

    CBN to maintain controversial cybercrime levy amid economic hardship

    In what some referred to as the unconventional stance of attempting to tax its way out of economic morass, the Central Bank of Nigeria (CBN) has confirmed it will continue enforcing the contentious cybercrime levy of 0.005 percent.
    According to the apex bank, the shall be payable on all electronic transactions as part of its updated guidelines for the 2024-2025 fiscal year.
    The cybercrime levy, introduced under the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aims to bolster Nigeria’s cyber security infrastructure.
    The Act mandates a small percentage of fees collected from electronic transactions to be allocated towards improving cybercrime prevention and prosecution measures.
    The levy has been a subject of controversy since its inception, with stakeholders debating its impact on financial transactions and its effectiveness in enhancing cybersecurity.
    Under the new guidelines, which are set to take effect from the beginning of the fiscal year, the CBN has outlined that the 0.005% levy will apply to all electronic transactions conducted within the country.
    This includes online payments, electronic fund transfers, and other digital financial services.
    The CBN’s decision to maintain the levy comes despite criticism from various quarters, including business associations and financial institutions, who argue that the levy increases transaction costs and may be a burden on consumers and businesses.
    Critics also question the transparency and accountability of how the funds collected from the levy are utilized.
    In response to these concerns, the CBN has emphasized that the levy is crucial for strengthening the country’s cyber defence capabilities, which are increasingly necessary for an era of rising digital threats and cybercrime.
    The bank has also committed to improving transparency and reporting on how the levy funds are spent to address concerns about its management.

  • Again Nigeria’s inflation rate eases in August

    BREAKING! Again Nigeria’s inflation rate eases in Augus

    Nigeria’s annual inflation rate eased again in August after a persistent rise in nearly two years.
    Inflation rate eased further to 32.15 per cent in August 2024 relative to the July 2024 headline inflation rate of 33.40 per cent, the National Bureau of Statistics (NBS) announced Monday.
    Inflation indicators compare prices of goods and services in 12 months. A decline does not necessarily imply a reduction in prices; instead, it shows the rate of price increase had fallen compared to previous months.
    According to the NBS food inflation was 37.52 per cent in August 2024 as against 39. 53 per cent recorded in July.
  • CBN directs payment service providers to begin PoS transaction tracking

    CBN directs payment service providers to begin PoS transaction tracking

    The Central Bank of Nigeria has directed all Payment Service Providers to route all transactions from PoS terminals at merchant and agent locations through an approved CBN Payment Terminal Service Aggregator.

    The Apex Bank explains that this directive is without prejudice to whether such transaction was physical or electronic.
    It also issued a 30-day deadline requiring service providers to comply with enhanced routing guidelines for Point of Sale transactions.
    This move aims to strengthen the monitoring of electronic transactions across Nigeria and decentralise PoS transaction routing, addressing concerns about the centralisation of such transactions under a single entity.
    The apex bank, in a circular signed by Oladimeji Yisa Taiwo on behalf of the CBN’s Payments System Management Department on Thursday, stated that all PoS transactions from merchant and agent locations must now be routed through any CBN-licensed PTSA.
    The circular read, “To achieve the objective of tracking electronic transactions in Nigeria, the Central Bank of Nigeria, in August 2011, granted a Payment Terminal Service Aggregator license to Nigeria Interbank Settlement System Plc.
    In furtherance of the above, the CBN hereby directs acquirers to route all transactions from PoS terminals at merchant and agent locations, whether on physical or electronic PoS terminals, through any CBN-licensed Payment Terminal Service Aggregator.”
    “PTSAs are required to send PoS transactions to only processors certified by the relevant Payment Scheme, nominated by the Acquirer, and licensed by the CBN.”
    This development follows the expiration of the 5th September deadline for PoS agents to formally register their businesses with the Corporate Affairs Commission.
    Although the directive was challenged in court, the CAC recently announced that it has commenced taking drastic actions, including shutting down PoS businesses that failed to register.
    The directive on PoS business registration comes against the backdrop of frequent fraud incidents involving PoS terminals and the Central Bank of Nigeria’s plans to prevent trading in cryptocurrency or virtual currency.
    According to a report by Nigeria Inter-Bank Settlement System Plc, PoS terminals accounted for 26.37% of fraud incidents in 2023
  • 100 Sacked Staff Sue Nigeria’s Central Bank

    100 Sacked Staff Sue Nigeria’s Central Bank

    …Claim Damages
    About 100 sacked staff of the Central Bank of Nigeria (CBN) have sued the apex bank at the National Industrial Court seeking payment for damages.
    About 200 staff of the CBN were sacked in May, by the Yemi Cardoso administration as part of the bank’s re-organization strategy.
    The sacked staff are, among other things, seeking full payment of their monthly salaries, allowances and all other financial benefits they should have been entitled to if they were still in the employment of the bank, from the time their employments were terminated to the time they should have retired from the apex bank.
    The former CBN staff’s Lead Counsel, Ola Olanipekun (SAN), on Thursday, made the court documents available to select journalists in Jos, Plateau State.
    Olanipekun stated that the sacked staff approached the court to enforce their right to fair hearing as workers who had been unjustly sacked by CBN.
    According to Arise TV, the sacked staff’s lead counsel said, “the unlawful action of the apex bank has caused monumental damages to his clients running into hundreds of millions of Naira, adding that they are praying the court to ensure that the defendant pay all the claimants their monthly salaries, allowances and other emoluments/entitlements.”
    Olanipekun added that “one of his clients who still has nine years of service left with the Bank would have earned, if his employment had not been unlawfully terminated, a sum of ₦1,621,455.70 monthly as evidenced by his salary payment, and such other monies in that regards as his current or subsequent promotion position/grades would be entitled.
    “He is praying for an order of the court to ensure that the defendant pays forthwith, all monthly salaries and allowances that the claimant would have earned in the course of his service/employment, being the sum of ₦178, 360,127.00 or such other sums in that regard, from the effective date of unlawful termination of his appointment up and until his due date of lawful retirement on 4th August, 2033.
    “The counsel said that the claimant is also praying the court to ensure that the sum of N100,000,000 million is paid to him as General Damages against the defendant, for wrongful termination of his contract of employment.
    “The sum of ₦30,000,000.00 as the cost of litigation/prosecuting the suit is also demanded from the defendant with 21 percent post-judgment interest, per annum, on all judgment sums awarded, from the date of judgment until the entire judgment sum is wholly defrayed/liquidated as well as further orders as the court may deem fit to make in the circumstances of the case.”
    Olanipekun explained that the Originating Summons dated 22 August 2024, is supported by a 27 paragraphs affidavit deposed to by the Claimant himself.
  • Banks, others shut as hunger protest holds

    Banks, others shut as hunger protest holds

    Banks and other financial institutions in the country will be closed on Thursday, August 1, 2024, as the planned hunger strike begins across the country.

     

    While none of the banks outrightly announced a closure, chats with different employees of the banks indicated that they have been advised not to report for work on Thursday as the banks monitor the protest.

     

    A banker who spoke with The PUNCH said, “You saw what happened during previous protests, banks were targets. We don’t want a repeat of a similar experience, hence we have been advised to monitor the situation first and then we know where to go from there.”

     

    Another banker based in Lagos simply said, “I’m not going to work tomorrow,” when asked.

     

    However, another banker said they were not advised either way, just told to exercise caution during their commute.

     

    A Pension Fund Administrator, Leadway Pensure, in a mail to their customers on Wednesday titled ‘Business Continuity Amid Planned Protest’ said, “Due to the planned nationwide protest starting August 1, 2024, please be informed that all our office will be closed on Thursday, August 1, 2024, and Friday, August 2, 2024, at the first instance as we monitor the situation.”

     

    The PFA went on to urge its customers to adopt its digital channels for their transactions.

     

    Asset Management firm, Meristem Securities Limited, also issued a notice of closure to its customers on Wednesday.

     

    “Dear esteemed client. Due to the upcoming nationwide protest tomorrow, this is to inform you that all our offices in Lagos, Port Harcourt and Abuja will be closed on Thursday, 1st June 2024. We will closely monitor the situation and provide further communication, depending on the developments of the protest.”

     

    Their customers were advised to reach them via their online channels.

     

    Speaking with The PUNCH in an exclusive interview, the President of the National Union of Banks, Insurance, and Financial Institutions Employees, Anthony Abakpa, said, “Banks will monitor the National planned protest closely and see how it plays out. The regulatory body has not given express approval to close any of the bank operations amid the protest.

     

    “Banks cannot close shop without the express approval of the Central Bank of Nigeria. We will monitor closely while we have advised our members to exercise extra caution and be alert to stay safe during and after.”