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Tag: CBN

  • Nigeria’s central bank (CBN) governor under investigation after suspension

    Nigeria’s central bank (CBN) governor under investigation after suspension

    A few hours after President Bola Tinubu suspended him from office, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, was detained by Nigeria’s secret police, the State Security Service (SSS).

    “The Department of State Services (DSS) hereby confirms that Mr Godwin Emefiele, the suspended Governor of the Central Bank of Nigeria (CBN), is now in its custody for some investigative reasons,” Peter Afunanya, the spokesperson for the agency, said in a press statement that he shared with PREMIUM TIMES.

    Mr. Afunanya did not disclose any specifics regarding the circumstances behind Mr. Emefiele’s arrest, including when it took place, how it happened, or where he is being held. However, PREMIUM TIMES has learned that the banker was taken from his house in Lagos and transported to Abuja while he was under the protection of a team of operatives. After that, he was reportedly interrogated at the headquarters of the State Security Service (SSS), which is located in the Asokoro District of the nation’s capital.

    On Friday night, there were rumours that the SSS had detained Mr. Emefiele shortly after they had suspended him from his position. However, the law enforcement agency stated via tweet early Saturday morning that the top banker was not currently in its possession.

    It is not obvious why the SSS is keeping the officer who is now under investigation. But on Friday, the office of the Secretary to the Government of the Federation said that his office, the Central Bank of Nigeria (CBN), was the subject of an inquiry.

    Read also: CBN imposes e-payment ban on 572 bank customers’ BVN 

    Emefiele’s relationship with SSS 

    Recent events have resulted in a tumultuous relationship between the SSS and Mr. Emefiele. In December of the previous year, the agency levelled numerous allegations of wrongdoing against the governor.

    In December, the SSS made a covert request to a court for a warrant to arrest him on the grounds that he is suspected of “financing terrorism, fraudulent activities, and economic crimes of national security dimension.”

    However, the motion was denied by the Federal High Court in Abuja on the grounds that the secret security unit did not provide adequate evidence to support the issuance of an arrest warrant against Mr Emefiele.

    In addition to this, Mr Emefiele came under fire for his controversial entry into partisan politics, during which he ran for the presidential nomination of the party that is currently in power, the All Progressive Congress (APC). Support organisations were clamouring for the governor to emerge as the flagbearer of the ruling party, despite the fact that the governor attempted to deny his role in political politics.

    The governor’s extraordinary involvement in partisan politics has drawn significant criticism, and many experts have voiced their concerns regarding the governor’s impartiality as well as the CBN’s independence as a result of the governor’s actions.

    Terrorism allegations against Emefiele  

    In recently obtained court documents, the State Security Service (SSS) makes the allegation that the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has been paying “unknown gunmen” and members of the illegal Indigenous People of Biafra (IPOB). 

    The records present, for the very first time, the missing specifics of the allegation of terrorism financing that the SSS brought against Mr. Emefiele in December of last year.

    The Indigenous People of Biafra (IPOB) is a separatist organisation that advocates for the creation of an independent Biafra nation out of the five Igbo-dominated states in South-east Nigeria as well as sections of surrounding states.

    Since September 2017, a court has deemed the organisation that is suspected of being responsible for violent events in the South-east region during the past few years to be a terrorist organisation. As a result, the group has been proscribed.

    The Nigerian media reported in December on the unsuccessful attempt by the State Security Service (SSS) to seek an order from the Federal High Court in Abuja for the arrest of Mr. Emefiele on a variety of claims, one of which is that he financed terrorist organisations.

    After hearing the arguments presented by SSS’s legal team, the Chief Judge of the Federal High Court, John Tsoho, decided not to allow the motion for an order to be issued against Mr. Emefile.

    In a decision that was handed down on December 9th, the judge stated that the application should not be granted since there was an error in the procedure that the SSS used in its application.

    The judgement was finally brought to the attention of the Nigerian media, eleven days after it was handed down by the court.

    However, the stories did not disclose any specifics about the serious accusations that the agency has made against Mr Emefiele.

    A source has recently obtained the court files that the SSS has submitted, offering astounding new details regarding the agency’s charges against the CBN governor. This development comes eight weeks after the court rendered its ruling.

    The State Security Service (SSS) accused him of a number of serious offences, including destroying the government of President Muhammadu Buhari, financing terrorism, aiding and abetting terrorism, and committing other economic crimes with the purpose of damaging Nigeria’s national security. The allegations were made in a string of weighty allegations.

    To be more precise, the agency also criticised Mr. Emefiele of poor management of the CBN subsidiary NISRAL as well as the Anchor Borrowers Programme that is run by the central bank.

  • BVN has no expiry date in Nigeria- CBN 

    BVN has no expiry date in Nigeria- CBN 

    The Central Bank of Nigeria (CBN) has restated that the Bank Verification Number (BVN) issued within Nigeria does not have an expiration date. 

    According to a statement signed by Isa AbdulMumin, Ag. Director of Corporate Communications at the CBN, the BVN issued in Nigeria remains valid indefinitely once a customer’s biometrics have been captured and enrolled in the NIBSS database. 

    The CBN emphasized that the BVN does not expire, although the Regulatory Framework for BVN issued in 2021 allows customers to update their records under specific conditions outlined in the document and after receiving clearance from relevant authorities. 

    The CBN encourages bank customers in the country, especially those whose biometrics have been registered in the system, to continue using their unique identifiers throughout their lifetime.

    Read also: CBN imposes e-payment ban on 572 bank customers’ BVN 

    Reasons for clarification

    The CBN clarification was in response to reports suggesting that the BVN, issued in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), becomes invalid after a ten-year period. 

    A trending video on social media was alerting Nigerians on the need to revalidate their BVN after 10 years of issuance. With the BVN programme taking off in 2014, the video circulating on WhatsApp said most Nigerian depositors would need to update their BVNs next year.

    Why BVN is for a lifetime

    The Bank Verification Number (BVN) in Nigeria is designed to be valid for a lifetime due to its purpose and the benefits it provides. Here are a few reasons why BVN is intended to be a lifelong identification:

    Identity Verification: The primary objective of BVN is to establish and verify the identity of bank customers. By capturing an individual’s biometric data, such as fingerprints and facial recognition, the BVN provides a unique identifier that remains constant throughout a person’s lifetime. This helps prevent identity theft, fraud, and impersonation, ensuring the integrity of banking transactions.

    Seamless Banking Services: The BVN serves as a means to link and consolidate an individual’s multiple bank accounts across different banks. This linkage enables customers to access various banking services conveniently, such as funds transfer, account balance inquiry, and electronic payments, without the need for separate identification or documentation.

    Regulatory Compliance: The implementation of BVN aligns with regulatory requirements and international best practices in the financial sector. Having a standardized and consistent identification system simplifies compliance processes for banks and regulatory authorities. It allows for efficient monitoring of financial transactions, enhancing transparency and reducing the risk of money laundering, terrorist financing, and other illicit activities.

    Customer Convenience: By his eliminating the need for repetitive identification procedures, the BVN streamlines banking processes and reduces administrative burdens for customers. Once a customer’s biometrics have been captured and enrolled in the database, they can use their BVN across various banks and financial institutions without the need for additional verifications.

    Data Integrity and Security: The BVN system employs robust security measures to protect the biometric and personal information of individuals. Safeguarding this sensitive data ensures that customers can rely on the BVN as a secure and trusted identification method throughout their lifetime.

    Overall, the lifetime validity of BVN ensures a reliable and standardized identification system in the Nigerian banking sector, promoting efficiency, security, and ease of access to financial services for customers.

  • CBN imposes e-payment ban on 572 bank customers’ BVN 

    CBN imposes e-payment ban on 572 bank customers’ BVN 

    The Central Bank of Nigeria (CBN) has imposed an e-payment ban on 572 bank customers’ Biometric Verification Numbers (BVN) due to fraudulent activities.

    The central bank also announced plans to assess the country’s payment system in order to prepare for future development in electronic banking transactions. 

    This information was given by Adewuyi Adeyemi, Deputy Director of the CBN’s Payment System Department, at the 34th CBN seminar for finance correspondents and business editors, which was recently conducted in Calabar, Cross Rivers State.

     According to him, the decision was spurred by the difficulties and extensive transaction failures that bank clients encountered during the naira redesign programme, which witnessed an increase in e-payment transactions. 

    Adeyemi went on to explain that the 572 consumers’ BVNs were added to a watchlist, resulting in their removal from the e-payment system. As a result, these customers must execute banking transactions in person at the bank branch where their account is registered. 

    He explained that the bank accounts were placed on the watchlist for a variety of reasons, including suspected fraudulent or unlawful actions, violations of financial legislation, or noncompliance with anti-money laundering standards. According to Techpression, when accounts are placed on a watchlist, they are closely monitored by the CBN and other relevant agencies in order to prevent potential financial crimes and maintain regulatory compliance. 

    Read also: CBN Monitors 6,047 BVNs for Fraud

    Infrastructure audit for e-payment

    Adeyemi stated that the recent spike in transaction volume had both advantages and disadvantages, and these spikes occurred twice in the last four years, during the COVID-19 pandemic and in January of this year, during the currency redesign.

    “During the COVID, we had Payment System Vision, PSV 2020, where we were trying to drive e-payment adoption across many sectors of the economy. COVID actually pushed the bar because our target for e-payment transactions was actually exceeded.

    “The same thing happened this year. I can say we were actually not ready for the spike in volume we experienced during the naira redesign. That is one of the reasons why we decided internally that this year we should actually conduct an infrastructure audit based on the principle of Financial Market Infrastructure, which is an international standard.

    “We have done it before. It was part of the PSV 2020. We did it in 2018. So we know how to do it. We are not doing it as CBN. We are actually hiring a foreign consultant to do it to ensure there is no bias.

    “The audit will give us an opportunity to benchmark our maturity level against international standards. That way we will be able to identify gaps in our infrastructure that we need to close if you really want to be there.”

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    How CBN e-payment audit will affect bank customers

    The audit of the Central Bank of Nigeria (CBN) e-payment system is likely to have several potential impacts on bank customers, both in the short and long term. 

    During the audit, there may be some disruptions to the e-payment system, which could cause delays or errors in processing transactions. Customers may experience longer wait times or failed transactions, which could cause inconvenience and frustration.

    One potential benefit of the audit is that it could lead to improved security measures for e-payment systems. This could help to prevent fraud and other forms of cybercrime, which could benefit customers by reducing the risk of financial loss.

    The audit could identify areas where the e-payment system could be streamlined or made more efficient. This could lead to faster, more reliable transactions, which could be a benefit to customers who rely on e-payment services.

    The audit could potentially lead to changes in the e-payment market, such as new providers entering the market or existing providers improving their services. This could increase competition, which could lead to better services and pricing for customers.

    While the short-term impacts of the audit may be disruptive, the long-term benefits could be significant. A more secure, efficient, and reliable e-payment system could help to promote economic growth, financial inclusion, and technological innovation in Nigeria, which could benefit customers and the broader economy over time.

  • CBN educates states, institutions on eNaira

    CBN educates states, institutions on eNaira

    The Central Bank of Nigeria (CBN) has sent various teams to different states to undertake awareness campaigns regarding its digital currency, eNaira, in order to encourage the usage of digital payments and discourage physical cash transactions.

    The Central Bank of Nigeria (CBN) is urging Nigerians to embrace the eNaira as part of the government’s cashless policy drive.

    Sensitization campaign in Rivers

    During a two-day sensitization program on eNaira held at the University of Port Harcourt and the Rivers State-owned Ignatius Ajuru University of Education (IAUE), the CBN, in collaboration with Zenith Bank, urged for the adoption of eNaira as an alternative financial transaction method in the country. 

    The Port Harcourt Branch Controller of CBN, Mr. Maxwell Okorafor, stated that the main objective of the event was to offer comprehensive information to students and the general public about eNaira.

    According to him, the introduction of eNaira aims to simplify financial transactions for Nigerians and enhance the country’s economy. 

    He further clarified that eNaira is cost-effective and offers numerous advantages, such as curbing financial crimes, decreasing money laundering and other forms of financial fraud, as well as ensuring transparency in monetary policies. 

    Additionally, Okorafor emphasized that the adoption of eNaira will bring about benefits to institutions, particularly in the payment of fees, while also decreasing the cost of policy management.

    “We are here to introduce the CBN Cryptocurrency, known as eNaira. eNaira is nothing other than the naira in your palm and in your wallet. Whatever you can do with the money in your pocket and your wallet, you can also do with eNaira.” Okoroafor said.

    Read also: CBN, ANAACOP Unveil Agro eNaira Digital Currency, Target 5m Farmers

    Kaduna sensitization campaign

    In Kaduna, the CBN said the overall pursuit of a cashless economy is one of the reasons it has been aggressively encouraging Nigerians to get on board the eNaira platform and get used to life without physical cash.

    Addressing a group of potential agents in the Malali area of Kaduna on the viability of the eNaira, a Deputy Director in the CBN, Mallam Muhammad Hamisu Musa, said that e-Naira is representing the same physical cash they are familiar with irrespective of the fact that the digital currency cannot be touched or felt like its physical counterpart.

    “The other important thing you all need to know is that the Central Bank is not a profit making organisation and we are not engaged in giving loans by floating eNaira. Using eNaira does not command bank charges. It is meant to facilitate better and faster transactions and then reduce the issues we are having with physical money like armed robbery, money laundering, kidnapping, fire incidents and so on.

    “And you know, with the eNaira, you can pay money exactly as you owe, to the exact amount that the services or products you are purchasing, like you can pay it up to the last kobo. Whereas with physical money that we are used to you cannot do that because people will start looking for change which is difficult to get,” he said.

    The apex Bank officials were in Kaduna over a two-day period in the company of its partner agent for the state, Aymaa Global Ventures, which recruited the participants for the sensitisation events.

    The team was also at the palace of the District Head of Kawo, Kawo Market and also Central Market, all in Kaduna, on Thursday where hundreds of enthusiastic market women and leaders engaged them in a robust question and answer session.

    The highlight of each of the sessions was the fact that all the participants had their eNaira wallets opened for them by the CBN and Aymaa officials.

    CBN Records 700,000 transactions worth N8 billion on eNaira

    The CBN is running campaigns at the University of Nigeria

    The Central Bank of Nigeria’s (CBN) cashless policy sensitisation programme was recently applauded by the University of Nigeria, Nsukka (UNN).

    According to Mr Chika Ugwueze, Assistant Director of Payments System Management Department, CBN, eNaira is the digital equivalent of the physical naira that may be used for all transactions, hence helping the implementation of the cashless policy.

    He went on to say that, unlike the old naira, the eNaira cannot be physically held. However, for monetary transactions, both currencies can be used interchangeably.

    “We chose UNN for the sensitization seminar because it is one of the country’s oldest premier universities with a large population of students and staff,” he explained.

    “eNaira will reduce the risk of theft and loss while also making money transactions easier to track and monitor.”

    “In eNaira, you are opening a direct account with CBN, just like you would in a commercial bank, and you can rest assured that your money is safe and in a more secure and efficient financial system.”

    “Also, in the event of a commercial bank’s liquidation, payment of money to customers may take longer than necessary or even be lost, whereas in eNaira your money is secure any day, any time as long as Nigeria exists,” he added.

  • Why online financial transactions proves problematic in Nigeria

    Why online financial transactions proves problematic in Nigeria

    Nigeria’s financial sector is flourishing. It’s crucial to recognise that the financial transactions system’s issues are being addressed. 

    Financial organizations and their clients struggle with unsuccessful transactions, although improvements are being made. 

    There are always ways to fix failed transactions, which can be frustrating and costly. Individuals and businesses can overcome these hurdles and grow with the correct help and tools.

    According to the report’s industry sources, up to 60% of unsuccessful transactions were settled, leaving only 40% of them unresolved.

    The CBN’s naira redesign policy pushed digital transactions to all-time highs, although compared to the volume of transactions in Q1 2023, the resolutions of failed transactions have continued to decline.

    Read also: 5 Investment Apps for Nigerians

    Why do financial transactions fail?

    According to data provided by the Central Bank of Nigeria (CBN), their initiative to redesign high-denomination money resulted in the removal of 2.3 trillion Naira from circulation between October 2022 and February 2023.

    Nigerians signed up for digital and electronic banking services as a result of the lack of currency, which gradually led to a move away from a cash-based economy.

    In this regard, mobile banking transactions more than doubled between October 2022, when the CBN first stated its plan to change the currency, and the end of February 2023.

    Mobile banking transactions increased from 1.1 trillion to 2.6 trillion in one year. Point-of-sale (POS) terminal transactions reached historic highs, as did the number of terminals deployed nationwide.

    The Chief Operating Officer of the FinTech Association of Nigeria stated in a statement that “the cash crisis would definitely reaffirm the need for everyone to register on a digital platform and increase financial inclusion in the rural areas.”

    The value of NIBSS Instant Payment (NIP) transactions, which fell to about 36.8 trillion in February, rose to 48.3 trillion by March after being 39 billion in January.

    According to NIBSS, PoS transaction volume jumped from 113.53 million in February to 177.93 million in March, and value rose from 883.4 billion to 1.152 trillion, a 30.41% increase.

    The first quarter’s unresolved unsuccessful e-payment transactions surged with this wave. Because of this, social media is filled with curses and concerns about Nigeria’s cashless economy. Failed transactions are a frequent topic in Nigeria.

    Elvis Christopher, Product Partnerships Executive, calls this the largest difficulty since the naira redesign policy and the migration to digital and alternative media. Auto-reversal has reduced this issue for most institutions; however, platform stability can be improved.

    “Customer service representatives at various institutions have bitterly complained about the rise in failed transaction complaints. Tier1 banks had to lodge personnel overnight and work extra hours to minimize their failed transaction backlog. efforts without results. Customers distrust the 2–5 days it takes to resolve refused transactions.

    Nigeria’s financial sector is flourishing. It’s crucial to recognise that the financial system’s issues are being addressed. Financial organizations and their clients struggle with unsuccessful transactions, although improvements are being made. There are always ways to fix failed transactions, which can be frustrating and costly. Individuals and businesses can overcome these hurdles and grow with the correct help and tools. 

    According to the report’s industry sources, up to 60% of unsuccessful transactions were settled, leaving only 40% of them unresolved.

    The CBN’s naira redesign policy pushed digital transactions to all-time highs, although compared to the volume of transactions in Q1 2023, the resolutions of failed transactions have continued to decline.

    Why do transactions fail?

    According to data provided by the Central Bank of Nigeria (CBN), their initiative to redesign high-denomination money resulted in the removal of 2.3 trillion Naira from circulation between October 2022 and February 2023.

    Nigerians signed up for digital and electronic banking services as a result of the lack of currency, which gradually led to a move away from a cash-based economy.

    In this regard, mobile banking transactions more than doubled between October 2022, when the CBN first stated its plan to change the currency, and the end of February 2023.

    Mobile banking transactions increased from 1.1 trillion to 2.6 trillion in one year. Point-of-sale (POS) terminal transactions reached historic highs, as did the number of terminals deployed nationwide.

    The Chief Operating Officer of the FinTech Association of Nigeria stated in a statement that “the cash crisis would definitely reaffirm the need for everyone to register on a digital platform and increase financial inclusion in the rural areas.”

    The value of NIBSS Instant Payment (NIP) transactions, which fell to about 36.8 trillion in February, rose to 48.3 trillion by March after being 39 billion in January.

    According to NIBSS, PoS transaction volume jumped from 113.53 million in February to 177.93 million in March, and value rose from 883.4 billion to 1.152 trillion, a 30.41% increase. 

    The first quarter’s unresolved unsuccessful e-payment transactions surged with this wave. Because of this, social media is filled with curses and concerns about Nigeria’s cashless economy. Failed transactions are a frequent topic in Nigeria.

    Elvis Christopher, Product Partnerships Executive, calls this the largest difficulty since the naira redesign policy and the migration to digital and alternative media. Auto-reversal has reduced this issue for most institutions; however, platform stability can be improved.

    “Customer service representatives at various institutions have bitterly complained about the rise in failed transaction complaints. Tier1 banks had to lodge personnel overnight and work extra hours to minimize their failed transaction backlog. Efforts without results. Customers distrust the 2–5 days it takes to resolve refused transactions. 

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    Common transaction failures 

    Insufficient funds occur when someone tries to make a transaction, but their account isn’t funded enough to cover the cost. If this happens, the transaction will probably fail because they did not wait to confirm when they expected the payments.

    Network issues are particularly common with electronic transactions, such as ATM or mobile banking transactions, requiring a reliable network connection. Poor network connectivity, downtime, or system maintenance can cause a transaction to fail.

    When someone gives false or inadequate information during a transaction, it is another major reason for unsuccessful transactions in Nigeria. The financial institution or service provider may decline the transaction as a result, which may be the result of an error or oversight.

    Nigerian transactions often fail due to fraud or insufficient information. Errors or oversights may cause the financial institution or service provider to deny the transaction.

    System malfunctions or service provider software or hardware difficulties cause technical problems. Incompatible or outdated devices, software, and browsers can cause technical issues.

  • CBN sensitises traders on benefit of eNaira

    CBN sensitises traders on benefit of eNaira

    The Central Bank of Nigeria has begun a sensitization tour across the country to enlighten businesses and businesspeople about the multiple advantages of the eNaira wallet, urging residents to support the programme.

    Officials from the bank, in collaboration with other banks and some Nollywood stars, educated traders and residents of Ondo state about the importance of using a cashless platform for transactions, assuring them that the introduction of the eNaira wallet would address the scarcity of cash and the challenges that Nigerians face.

    Mrs Mary Fasheitan, Special Assistant to the CBN Governor, led the CBN team to the Akure market, where they emphasised the need to embrace the cashless platform for transactions.

    Read also: CBN Records 700,000 transactions worth N8 billion on eNaira

    Seamless transactions without charge

    Fasheitan explained that it is a good opportunity to key into the initiative, which is seamless and can be done anywhere, adding that the platform could be used for all economic transactions without any charge.

    Nollywood actor, Gabriel Afolayan, added that the platform would is of great value to Nigerian currency beyond the physical one, describing it as a brighter initiative that would enable Nigerian residents to move around without being scared.

    He therefore urged Nigerians to embrace it and use it, saying it was the next level to seamless transactions.

    Other e-naira users at the event described the initiative as laudable, saying it enabled them to save more. They explained how they had criticised the initiative in the beginning but later realised its benefits over cash.

     They asked the major players in the sector to strengthen banking internet for users to enjoy the benefits of the platform.

    The CBN team also visited the Deji of Akure, Oba Aladetoyinbo Aladelusi, on the usage of the digital currency in the state.

    The Acting Branch Manager of CBN in Akure, Mr Samuel Giwa, told the traditional ruler that the policy was an initiative spearheaded by the CBN which aimed to reduce the physical cash in transactions and promote the adoption of digital payments, adding that it would increase financial inclusion, reduce corruption and money laundering, and improve the efficiency of the financial system.

    According to him, the new digital currency will improve the way Nigerians conduct transactions.

    “The eNaira is not just a currency, but an important step towards building a more robust and secure financial ecosystem. It was designed to make transactions easier, efficient, and more secure.

    “The eNaira has indeed become a critical part of the Nigerian financial ecosystem, and an alternate channel.

    “It will not only support the Ondo State economy, but Nigeria as a whole; a symbol of progress and innovation and will pave the way for a more secure and efficient financial system,” he stated.

    The acting branch manager said as a people-focused central bank, the regulatory bank understood the current challenges associated with the implementation of the currency redesign policy, and the CBN was currently making efforts to address them.

    “However, to provide succour, we urge the people of Akure and Ondo State in general, to download the e naira Speed Wallet for easy payment for goods and services, as well as have convenient access to banking services,” he said.

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    Giwa implored all to be advocates of the eNaira and encourage others to explore the possibilities of the new digital currency.

    Giwa thanked the king and his council for providing an atmosphere for the bank to educate and sensitise traders and people of the state to the cashless policy.

    Mr Victory Otoba, who represented the Deposit Monetary Banks ( DMB) in the state, explained that digital payments would reduce the risk of theft and loss and as well make it easier to track and monitor transactions.

    Otoba said that with the platform, individuals and businesses could access financial services even if they did not have a traditional bank account.

    In his response, Oba Aladelusi applauded all the alternative means of economic transactions introduced by the CBN. The traditional ruler asked CBN and deposit banks to ensure that there was reliable and efficient infrastructure to make the policy endeared to Nigerians and hitch-free.

  • Access Bank issues Nigeria’s first AfriGO card

    Access Bank issues Nigeria’s first AfriGO card

    Access Bank has become the first financial institution in Nigeria to successfully issue the first live card of Nigeria’s national card programme, the AfriGO Card. The card system was developed by AfriGOpay, a financial services company linked with the Nigeria Inter-Bank Settlement System (NIBSS), to suit the requirements of the Nigerian payment industry.

    The Nigerian Interbank Settlement System (NIBSS) and the Central Bank of Nigeria (CBN) support the strategy, which aims to provide new solutions to consumers of financial services in Nigeria, Africa, and international markets.

    AfriGO is a major development in the fast-growing payments industry.

    Access Bank claims that with AfriGO, it would be able to give consumers valuable card features, comprehensive loyalty rewards, and a compelling incentive to use electronic payments rather than cash.

    Read also: Access Bank to Acquire Angola-based Finibanco Majority Stake

    Access Bank makes the first move

    Access Bank, Nigeria’s largest retail bank with over 60 million customers, is the first financial institution in Nigeria to successfully issue the first live card of Nigeria’s national card programme, AfriGO, Access Bank’s Deputy Managing Director for Retail Banking, Mr. Victor Etuokwu, said.

    “The AfriGO Card has extra advantages because it was created to aid in the development of Nigeria’s payment ecosystem, supporting more specialized payment services.”

    “It will boost payment security, financial involvement, data sovereignty, foreign exchange independence, and other benefits for Nigerians.” He said cardholders will benefit from more affordable and flexible payment options.

    The card runs locally and was created for Nigeria’s particular needs, according to Access Bank’s senior retail adviser, Robert Giles. Beginning on March 14, 2023, the bank began keeping track of successful purchases at PoS and ATMs.

    The development is regarded as a crucial turning point for Nigeria’s national payment system, where the demand for cash is at an all-time high.

    Domestic card benefits

    Domestic card scheme ownership minimizes foreign exchange demand and transaction costs. It will also help us engage with local fintechs and payment providers to build AfriGO solutions that address client pain points.

    “The payments landscape in Nigeria has continued to change via seamless and convenient real-time electronic payment solutions driven by innovation and advancement in technology,” said Premier Oiwoh, MD/CEO of NIBSS.

    “The launch of our national domestic card system, AfriGO, is highly opportune; it will promote our financial inclusion goals among many other benefits, and we are thrilled that Access Bank is the first bank in Nigeria to issue AfriGO cards to its customers.”

    “Access Bank has proven its much-needed commitment to financial inclusion, and we urge other financial institutions to begin issuing AfriGO for easier and more seamless payments for all Nigerians, regardless of region or financial status.”

    NIBSS Executive Director Ms Aminu Maida remarked, “With technology improvements, there are more possibilities for payments, and the recently created national domestic card system, AfriGO, gives us certain comfort in all financial transactions.” We’re glad Access Bank is the first to recognise AfriGO’s significance to the Nigerian financial sector.

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    CBN explains the National Domestic Card

    To improve Nigerian payments and compete with MasterCard and Visa, CBN announced the National Domestic Card on January 26, 2023. The card would be used for payments and foreign currency, according to the central bank.  

    Despite the CBN’s claims that Nigerians can keep their bank-issued debit cards, many regard the recent action as replacing them. The Domestic Card Scheme by the Central Bank of Nigeria (CBN) is billed to commence on January 16, 2023.

    The CBN stated the programme would unify Nigerian payments and bring in the unbanked in cooperation with the Nigeria Inter-Bank Settlement System (NIBS). MasterCard and Visa are expected to compete with the card.

  • CBN, ANAACOP Unveil Agro eNaira Digital Currency, Target 5m Farmers

    CBN, ANAACOP Unveil Agro eNaira Digital Currency, Target 5m Farmers

    The Central Bank of Nigeria (CBN) has inaugurated the “Agro eNaira Wallet Engagement” in partnership with the Association of Northern Agricultural and Allied Commodities Practitioners (ANAACOP).

    Five million farmers in northern states are to be enrolled in the programme throughout the dry and wet farming seasons of 2023 to 2024.

    The National President of ANAACOP, Alhaji Sadiq Umar Based user, disclosed this at the Agro eNnaira Wallet Launching in Yola, Adamawa State, over the weekend. 

    He highlighted that the initiative targets one million farmers in the northern states for the first year of the dry and wet seasons in 2023 and the remaining four million farmers for the seasons in 2024.

    Read also: The Central Bank Of Nigeria Unveils USSD Code For eNaira Transactions

    How Farmers Can Enrol For Loans Through Agro eNaira

    Farmers, according to Daware, would create eNaira wallet accounts with a sub-wallet account just for the programmed intervention and submit their information to be eligible for soft loans.

    According to him, 50 farmers from Adamawa’s Ribadu cluster were chosen to test the initiative before it was expanded to the other northern states.

    Daware went on to state that the scheme has chosen agro dealers, processors, and the Central Bank of Nigeria to devise a simplified mechanism of disbursing payments to farmers (CBN).

    He went on to clarify that the project will provide a platform for small-scale farmers to easily obtain loans using their eNaira wallets, emphasising that it would erase any obstacles they had previously encountered.

    Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), complimented the ANAACOP for its efforts, calling it the first of its type to assist local farmers in purchasing farm equipment using their eNaira wallet.

    Emefiele said that the CBN’s brilliant concept of a digital currency, expressed by Hajiya Rakiya Mohammed, Director Information and Communication Technology (ICT) of the CBN, was the first in Africa and the second in the world.

    In his vote of gratitude on behalf of the awardees, Malam Mijinyawa Mahmud asked for additional support for farmers in order to achieve long-term food security and turn the country into a net exporter of raw materials.

    The CBN has stated that adopting the eNaira wallet will help to alleviate the country’s cash scarcity in the middle of the current crisis. Mr Samuel Giwa, the state’s acting CBN Branch Manager, stated that the policy was a CBN strategy aimed at reducing the usage of physical currency in transactions and encouraging the acceptance of digital payments.

    He was speaking at the Palace of the Deji of Akure and Oja Oba Market in Akure over the weekend, lecturing traders and citizens of the state on the need to use a cashless platform for transactions.

    Giwa went on to claim that the policy’s implementation in 2021 will increase financial inclusion, reduce corruption and money laundering, and improve the financial system’s effectiveness.

    The eNaira, he believes, is more than just a currency; it is a critical step towards creating a more stable and secure financial climate.

    “It was designed to make transactions easier, more efficient, and more secure,” stated the CBN Branch manager.

    The eNaira has undoubtedly become an important component of the Nigerian financial ecosystem, as well as an alternative conduit.

    It would benefit not only the Ondo State economy but Nigeria as a whole; it will be a symbol of development and innovation, paving the way for a more safe and efficient financial system.”

    The acting branch manager indicated that the CBN, a regulatory bank with a people-centred objective, was actively trying to solve the challenges currently associated with the currency reform strategy’s execution.

    Yet, in order to aid residents of Akure and Ondo State, he urged them to download the eNaira Quick Wallet in order to make payments for goods and services and have easy access to financial services.

    Mrs Mary Fasheitan, the CBN’s Special Assistant on Payment to the Governor, stated that the CBN organised the sensitization for people to understand all the benefits that the eNaira provides to the banking system while speaking to traders at Akure’s Oja Oba Market.

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    Nigerian Public Figures Reactions to eNaira

    Speaking at the ceremony, Nollywood actor Gabriel Afolayan added that the platform would give Nigerian currency significance beyond only its physical form. He called it a better effort that would make it possible for people to move throughout Nigeria without feeling threatened.

    He urged Nigerians to adopt it and embrace it, calling it a step above simple transactions.

    The Deji of Akure, Oba Aladelusi Aladetoyinbo, praised the alternative forms of payment offered by the CBN in his remarks, but he urged the central bank and DMOs to put in place a dependable and effective infrastructure to make the policy popular with Nigerians and trouble-free.

  • CBN moves new, old notes to commercial banks, to prevent NLC strikes

    CBN moves new, old notes to commercial banks, to prevent NLC strikes

    The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has apologised to Nigerians for the double pain of lack of cash and an increase in unsuccessful electronic banking transactions, assuring them that his staff are working hard to find solutions. 

    To avoid NLC strikes, the CBN head also directed the transfer of both old and new currencies to commercial banks.

    He remarked at the conclusion of the two-day meeting of the monetary policy committee that took place in Abuja earlier this week.

    The majority of Nigerians are currently experiencing a cash crunch and terrible banking experiences due to the unreliability of banking transactions made through their mobile apps, USSD platforms, and debit cards, which makes them easy prey for other Nigerians posing as Point Of Sale (POS) operators. The latest redesign of the naira is to blame.

    Commenting on the subject, Emefiele stated that the apex’s department in charge of managing the bank payments system is working to ensure that problems with the electronic banking channels are rapidly fixed.

    Read also: CBN: Old Naira notes remains legal tender in Nigeria

    “I have to apologise. Online channels do in fact fail. Yet, it is undeniably due to the flood of online transactions that slammed the financial sector. Nonetheless, a solution is being found,” Emefiele stated.

    “Our payments system management section keeps an eye on the online payment platforms every day to make sure that any outages are immediately fixed so that business may continue as usual.”

    He also applauded fintechs for easing the burden on traditional banks and enabling easy transactions for Nigerians. 

    Cash shortage to go on

    Emefiele explained that the implementation of the naira redesign policy is what caused the reduction of currency outside the banks, which may go on for a while because the apex bank need to reassess the currency in circulation to prevent the situation of people hoarding monies by keeping them outside the banks for personal benefit.

    “The truth is that at some point we will need to reassess to know whether the currency in circulation has attained an optimal level so as to put in place measures to ensure that we don’t go to the level where we were when people kept money outside the banking system for their own benefits”. Emefiele said.

    “At the beginning of the naira redesign policy we said that there was about N3.23 trillion in circulation out of which only N500 billion was held in the banking system, while N2.73 trillion was outside the banks.

    “It was published on March 22, that currency in circulation is close to N1 trillion. CBN will continue to pump the newly redesigned currency into the market.” the CBN governor said.

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    CBN meets with NLC over strike intentions

    In its latest move, the Nigerian Labour Congress, NLC, called on workers to stop all activities in all branches of the CBN nationwide. It also called for the Abuja headquarters to be shut down due to the cash crunch in the country.

    According to NLC president Comrade Joe Ajaero, Nigerians have been subjected to untold hardship occasioned by the scarcity of naira notes to attend to medical needs and other areas of need.

    In a swift response, the CBN called for an emergency meeting with congress. The CBN representatives appealed to the NLC President to shelve its strike no plans that about two billion naira was pushed out on Thursday alone in a bid to address the hardship. They promised to ensure that the scarcity of naira notes would end as quickly as possible.

    NLC President Comrade Ajaero, however, told the CBN delegation that he was only concerned and interested in seeing that workers and other Nigerians collect their money in banks without stress.

    “ It does not bother us how much you pushed out, our concern is to see that this hardship comes to a stop.” Ajaero said.

    He also them to hasten their work day and night to solve the problem, that strike actions are still possible depending on further feedback from Nigerian workers on the ease of getting their hard earned money from the banks. To alleviate the effects of the country’s severe cash shortage, THE Central Bank of Nigeria (CBN) has sent extra banknotes to commercial banks. Isa AbdulMumin, the CBN’s acting director of corporate communications, made this announcement in a statement on Friday, March 24, in Abuja. The bank kept the commercial banks in the dark about how much it had taken.

    According to the ICIR, the CBN’s action appears to be a response to the Nigerian Labour Congress’s (NLC) Wednesday directive for its members to picket the central bank’s offices nationwide starting on Monday, March 27, in protest of the cash crunch. The CBN stated on Friday that banks must be open on Saturdays and Sundays to serve their customers.

    According to the statement, the CBN governor, Godwin Emefiele, will visit banks with his team to ensure compliance. He gave orders for all commercial banks to operate physically in the banking halls and fill their automated teller machines (ATMs) with cash.  He also urged Nigerians to be patient and promised that the difficulties brought on by the redesign of the naira would soon disappear.

  • CBN: Old Naira notes remains legal tender in Nigeria

    CBN: Old Naira notes remains legal tender in Nigeria

    Ten days after the Supreme Court of Nigeria declared that the N200, N500, and N1,000 notes would continue to be recognised as payment until December 31, 2023, the Central Bank of Nigeria (CBN) has reaffirmed the court’s decision.

    Unambiguously stating that the previous year’s policy on the redesign of the currency was unfair and that Nigerians had not received an adequate warning, the ruling issued last week made this point. Long lineups formed in front of Nigeria’s most prestigious banks all week despite the Supreme Court’s forceful ruling, which included a partial reprimand of President Muhammadu Buhari. 

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    Why the initial ruling of the Supreme Court was ignored

    The Central Bank and the Federal Government’s silence on the court judgment was the primary contributor to the widespread sense of unpredictability. There was no indication that the court order would be obeyed, and leading banks refused to receive or issue the old notes in spite of the order. According to a report, a bank employee was quoted as saying the following: “The banks cannot act on the Supreme Court ruling because the Central Bank, an independent body, controls us. The Central Bank has not directed us to align with the Supreme Court’s decision, so business will continue as usual.”

     

    The Central Bank confirmed that it would comply with the court’s decision and extend the validity of the old notes until December 31, 2023 while simultaneously putting the new notes into circulation. This decision was made in light of the fact that the court had previously ruled that the old notes were invalid. However, this statement was made after the Federal Government had previously given the impression that it did not comprehend why the Federal Government and the Attorney General had chosen to disobey the ruling of the court. In the midst of everything that was going on, state governments started the week by releasing statements to the media encouraging people to accept the old notes and spend them.

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    The opinions of some leaders over the confirmation of CBN

    Chukwuma Soludo, the current governor of Anambra state and a former governor of the Central Bank of Nigeria, revealed on Monday morning, March 13th, 2023, that the CBN had made the decision to comply with the order issued by the court. At the time of his tweet, the CBN had not yet issued a statement regarding the verdict. Nevertheless, Soludo tweeted the following to the people of Anambra: “Residents of Anambra are therefore advised to freely accept and transact their businesses with the old currency notes (N200; N500; and N1,000) as well as the new notes. Residents should report any bank that refuses to accept deposits of the old notes.”

    Residents are urged to report any financial institution that is unwilling to accept deposits of obsolete currency. The governor of Lagos state, Babajide Sanwo-Olu, sent out a tweet saying, “Kindly note that commercial banks have been directed to accept the old N500 and N1,000 notes as deposits and pay them out for withdrawals.”

    The Central Bank of Nigeria (CBN) issued a statement seven days after the tweets from state governors, 17 of whom had initially filed a lawsuit against the Federal Government in court regarding the Naira redesign policy. In one section of it, it stated, “Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023. Consequently, all concerned are directed to conform accordingly.”

    The Central Bank of Nigeria’s (CBN) acknowledgement of the court judgment and its directive to banks to honor the old notes will likely be a relief to many Nigerians. There is optimism that it will bring an end to the lengthy bank lines that customers have stood in for the past eight weeks.