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  • Banks’ll Increase Credit To Economy in 2022, Says CBN

    Banks’ll Increase Credit To Economy in 2022, Says CBN

     

    The Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, has said the banking sector will increase access to finance and credit for households in 2022.

     

    Emefiele said this recently in Lagos, according to a statement on Thursday.

     

    “The policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities,” he said.

     

    He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.

     

    He stressed the need for all stakeholders to work to build a more resilient economy that would be better able to contain external shocks, while supporting growth and wealth creation in key sectors of our economy.

     

    According to him, a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the base of the Nigerian economy.

     

    Emefiele said the country must do everything possible to reduce the importation of goods into the country.

     

    “Proactive steps on the part of stakeholders in the private sector, in collaboration with the government in supporting the growth of sectors such as manufacturing, ICT, and infrastructure, will strengthen our ability to deal with the challenges of COVID-19, and stimulate further growth of our economy,” he added.

     

    Speaking on the need to build an efficient infrastructure ecosystem in Nigeria and the role of improved infrastructure to the development of the Nigerian economy, he disclosed that all necessary approvals had been obtained for the full commencement of the Infrastructure Corporation in early 2022.

     

  • Banks Begin Deduction of Loans From Chronic Debtors’ Accounts in Other Banks

    Banks Begin Deduction of Loans From Chronic Debtors’ Accounts in Other Banks

     

    The Deposit Money Banks are recovering debts owed by chronic debtors from their accounts in other banks to curb the growth of non-performing loans in the industry, findings have revealed.

     

    Figures obtained from the Central Bank of Nigeria and the National Bureau of Statistics showed that the NPLs in the banks recorded a slight decline from N1.2tn at the end of second quarter of 2020 to N1.1tn at the end of July 2021.

     

    This is despite an increase in the gross loans in the industry in the period.

     

    The CBN said the measures it introduced such as the Global Standing Instruction to reduce banking sector risks was helping to reduce the NPLs in the sector.

     

    According to the CBN, the GSI, which commenced on August 1, 2020, allows banks to recover the outstanding principal and interest upon default from any account maintained by the debtor across all financial institutions in Nigeria.

     

    It said the slight improvement reflected the strengthening of risk management practices, the GSI policy and regulatory forbearance that had allowed banks to restructure credits impacted by the COVID-19 pandemic.

     

    Figures obtained from the NBS on banking sector for Q3 2020 showed that while the gross loans in the lending industry stood at N18.9tn, the total non-performing loans stood at N1.2tn.

     

    The latest figures from the CBN showed that while the gross loans rose to N22.2tn, the NPLs fell slightly to N1.1tn.

     

    The CBN said in the latest Monetary Policy Committee report that it would not raise the lending rates in the sector.

     

    “On loosening, the committee felt that this would lower retail interest rates and improve the ability of obligors to repay their obligations, with a complementary reduction in NPLs,” it said.

     

    CBN added that for the banking industry, “Recent data also show that stability has been maintained and a smooth functioning of financial intermediation ensured.

     

    “CBN staff report indicates that the banking sector’s non-performing loan ratio has fallen from 6.3 per cent in February to 6.0 per cent in March and further to 5.9 per cent in April.”

     

    The MPC noted that the capital adequacy ratio and the liquidity ratio both remained above the prudential limits at 15.2 and 41.7 per cent, respectively at the end of July 2021.

     

    The committee also welcomed the improvement in the NPL ratio at 5.4 per cent in July 2021, compared with 5.7 per cent in June.

     

    The committee urged the banks to sustain current efforts to bring the NPLs below the 5.0 per cent prudential benchmark.

     

  • Obiano Threatens To Seal Banks, Sanction Market Leaders Over IPOB’s Sit-at-home

    Obiano Threatens To Seal Banks, Sanction Market Leaders Over IPOB’s Sit-at-home

     

    The Anambra State Governor, Willie Obiano, has threatened to seal banks and punish market and motor-park leaders who will dare stay at home on Mondays or any day so declared by the Indigenous People of Biafra, IPOB.

     

    He directed banks, markets and motor parks in the state to be in operation on Monday.

     

    The governor, who said the sit-at-home compliance adversely affected the Gross Domestic Product and the general economy of the state, maintained that banks that failed to open on such days would be sealed for a week, adding that if such banks refused to open subsequently, they would be permanently closed.

     

    While addressing transport leaders at the Governor’s Lodge, Amawbia, on Sunday the governor cautioned against further adherence to the order which he said had become inimical to the state.

     

    He said, “I urged the commuters to feel free to ply their usual routes across the state on Monday, whether they ride or drive motorcycles, keke, shuttle, buses.

     

    “If markets don’t open, I will sack the leadership of the market. If the market and park leaders don’t comply, their leadership will be changed within two weeks.”

     

     

  • Forex Ban: We’ll Publish Your Identities, Banks Alert Defaulting Customers

    Forex Ban: We’ll Publish Your Identities, Banks Alert Defaulting Customers

    The identities of defaulters who circumvent the Central Bank of Nigeria’s policy on Foreign Exchange will be published, banks have notified their customers.

     

    The CBN had recently directed all commercial banks to publish the names and BVNs of customers who engage in fraudulent and unscrupulous practices to obtain foreign exchange from banks on their websites.

     

    The CBN had said, “Consequently, further to the various measures already put in place, all banks are hereby directed to publish on their websites the names and BVN of defaulting customers who present fake travel documents or cancel their tickets and fail to return the purchased PTA/BTA within two weeks as stipulated in the customer declaration form signed by them.”

     

    Both First Bank and United Bank for Africa have alerted their customers on the implementation of the CBN policy.

     

    First Bank in an electronic mail to its customers said, “We have been directed by the Central Bank of Nigeria to inform all our customers that unethical practices to circumvent the new CBN policy on the sale of forex, such as the presentation of false travel documents, visas, and the cancellation of flight tickets after purchasing personal travel allowance and business travel allowance, will no longer be tolerated.

     

    “Defaulting customers who present fraudulent travel credentials or cancel their tickets and fail to refund the purchased PTA and BTA within two weeks, as stated in the signed customer declaration form, will have their identities and bank verification numbers published.

     

    “We aim to implement this policy immediately as an organisation that is fully compliant with the Central Bank of Nigeria’s rules and regulations.

     

    “Our bank is committed to partnering with the CBN to ensure a transparent, efficient and stable FX Market that meets the needs of all legitimate users.”

     

    Also, UBA encouraged its customers to adhere to all CBN guidelines as directed.

     

    An e-mail sent by the bank read, “In line with our promise to keep you up to date on policies that may affect you, please note that the CBN has directed all banks to publish a list of PTA/BTA defaulters on their website.

     

    “Customers involved in fraudulent practices such as presenting fake visas or cancelling airline tickets after receiving PTA/BTA and failing to return the funds received to the bank within two weeks will have their details published (name and BVN) on our website.”

     

  •  [BREAKING] Customers Stranded as Imo Govt Shuts Banks Over IPOB’s Sit-at-Home Order

     [BREAKING] Customers Stranded as Imo Govt Shuts Banks Over IPOB’s Sit-at-Home Order

    Hundreds of bank customers were left stranded on Tuesday as the officials of the Imo State Government shut all the banks on Bank Road in Owerri, the state capital.

     

    Many customers were seen around 9am waiting at various affected banks. 

     

    Some of the banks that were sealed by the state government were Access, Polaris, First Bank, Eco Bank, and United Bank for Africa.

     

    Our correspondent saw customised ribbons the state government officials used in sealing the various banks as early as 7 am.

     

    Some of the staff of the banks told our correspondent that the operatives of Owerri Capital Development Authority sealed the banks.

     

    The PUNCH gathered that the banks sealed were those that failed to open on Monday, a day states in South East sit-at-home in protest of Nnamdi Kanu, the leader of the Indigenous People of Biafra who is being tried at the Federal High court in Abuja by the Federal Government.

     

    However, some government officials said that the banks were sealed because of building approval plans.

     

    Both the state commissioner for Information and strategy, Declan Emelumba, and the General Manager of OCDA Innocent Ikapmezie, did not respond to multiple calls put to their telephones by our correspondent.

     

    They had neither return the calls nor reply to text messages as of the time of filing this report.

     

  • CBN Directs Banks To Block 18 Companies’ Accounts

    CBN Directs Banks To Block 18 Companies’ Accounts

     

    The Central Bank of Nigeria, CBN, has directed banks to place a post-no-debit restriction on the bank accounts of 18 companies.

     

    This implies that all debit transactions, including Automated Teller Machines and cheques, on these accounts, have been blocked but can receive inflows.

     

    The directive was contained in a circular dated August 18 and signed by the Director of Banking Supervision, CBN, Haruna Mustapha, according to TheCable.

     

    The circular read in part, “You are hereby directed to place all accounts of the under-listed customers on Post-No-Debit restriction.”

     

    TheCable stated that the affected companies include “Bakori Mega Services, Ashambrakh General Enterprise, Namuduka Ventures Limited, Crosslinks Capital and Investment Limited, IGP Global Synergy Limited, Davedan Mille Investment Limited and Urban Laundry.

     

    Others are, “Advanced Multi-Links Services Limited, Spray Resources, Al-Ishaq Global Resources Limited, Himark Intertrades, Charblecom Concept Limited, Wudatage Global Resources, Treynor Soft Ventures, Fyrstrym Global Concepts Limited, Samarize Global Nigeria Limited, and Zahraddeen Haruna Shahru.

     

    The report also notes that the apex bank did not provide any reason for the action in the circular.

     

    However, the affected accounts belong to bureaux de change, construction firms, investment companies, laundering services, and property companies.

     

    Meanwhile, the CBN has cautioned microfinance banks against performing certain non-permissible activities, which include wholesale backing and foreign exchange transactions.

     

    This was contained in a circular titled, ‘Circular to all microfinance banks,’ released on Friday by Ibrahim Tukur on behalf of CBN’s Financial Policy and Regulation Department.

     

    The circular read, “The Central Bank of Nigeria has observed the activities of some Microfinance Banks that have gone beyond the remit of their operating licence by engaging in non-permissible activities, especially wholesale backing, foreign exchange transactions and others.

     

    “Given the comparatively low capitalisation of MFBs, dealing in wholesale and/or foreign exchange transactions are a significant risk with dire consequences for financial system stability.

     

    “It has therefore become imperative to remind all MFBs to strictly comply with the extant Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria 2012.”

     

    The apex bank warned that it would continue to monitor developments in the MFB sector and apply stringent regulatory sanctions for violations of extant regulations, including revoking licences.

     

  • Tax Evasion: FIRS Directs Banks to Deduct N1.8trn From Multichoice’s Accounts

    Tax Evasion: FIRS Directs Banks to Deduct N1.8trn From Multichoice’s Accounts

     

    The Federal Inland Revenue Service (FIRS) has appointed some commercial banks as agents to recover N1.8 trillion from accounts of MultiChoice Nigeria Limited (MCN) And MultiChoice Africa (MCA).

     

    Muhammad Nami, FIRS chairman, said the decision to appoint the banks as agents and to freeze the accounts was as a result of the group’s continued refusal to grant FIRS access to its servers for audit.

     

    Multichoice is the owner of the satellite television, DSTV, a popular subscription-based platform in Nigeria.

     

    Nami said the FIRS discovered that the companies persistently breached all agreements and undertakings with the service.

     

    He explained that the companies failed to promptly respond to correspondences, and further described them as lacking in data integrity and transparency as they continually deny FIRS access to their records.

     

    “Particularly, MCN has avoided giving the FIRS accurate information on the number of its subscribers and income. The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company,” a statement by Abdullahi Ahmad, FIRS director of communications and liaison department, quoted Nami to have said.

     

    The statement added that the group’s performance does not reflect in its tax obligations and compliance level in Nigeria.

     

    “The level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN) is very alarming. The parent company, which provides services to MCN has never paid Value Added Tax (VAT) since its inception.”

     

    The FIRS chairman said that Nigeria contributes 34 percent of total revenue for the Multi-Choice group, adding that the next to Nigeria from intelligence gathering is Kenya with 11 percent and Zambia in third place with 10 percent.

     

    According to him, the rest of African countries where they have presence, accounts for 45 percent of the group’s total revenue.

     

    “Information currently at the disposal of FIRS has revealed a tax liability for relevant years of assessment for N1.82 trillion and $342.5 million,” he said.

     

    “Under FIRS powers in Section 49 of the Companies Income Tax Act Cap C21 LFN 2004 as amended, Section 41 of the Value Added Tax Act Cap V1 LFN 2004 as amended and Section 31 of the FIRS (Establishment) Act No. 13 of 2007, all bankers to MCA & MCN in Nigeria were therefore appointed as Collecting Agents for the full recovery of the aforesaid tax debt.

     

    “In this regard, the affected banks are required to sweep balances in each of the above-mentioned entities’ accounts and pay the same in full or part settlement of the companies’ respective tax debts until FULL recovery. This should be done before the execution of any transaction involving the companies or any of their subsidiaries. It is further requested that the Federal Inland Revenue Service be informed of any transactions before EXECUTION on the account, especially transfers of funds to any of their subsidiaries.”

     

    Nami noted that it was important that Nigeria puts a stop to all tax frauds that have been going on for too long.

     

    He added that all companies must be held accountable and made to pay their fair share of relevant taxes including back duty taxes owed, especially VAT for which they are ordinarily agents of collection.

     

  • Banks Consume More Energy Than Bitcoin – Report

    Banks Consume More Energy Than Bitcoin – Report

     

    A report by Galaxy ‘On Bitcoin’s energy consumption’ has revealed that traditional banks use more energy than Bitcoin.

     

    Last week, the crypto market tanked after Tesla said it was no longer going to accept bitcoin in exchange for its cars. It cited high energy usage as its reason.

     

    The Galaxy report estimates that the banking system uses 263.72 TWh of energy each year while bitcoin consumes about 113.89 TWh/yr in total. Total global energy supply is greater 166,071 TWh/yr.

     

    The report also estimated that the gold industry utilizes roughly 240.61 TWh/yr.

     

    It said as a new form of technology, Bitcoin was not directly going to replace any legal tender.

     

    It added that Bitcoin consumed a substantial amount of energy as the energy consumption made it robust and secure.

     

    It said Bitcoin’s direct energy consumption came from three sources:  the nodes that validate and relay transactions, the pools that coordinate miners’ activity across the world, and the mining machines.

     

    Most of bitcoin’s energy consumption comes from operating mining machines, roughly 99.8 per cent, it added.

     

    Although the crypto market continues to tank, it is expected to rebound soon.

     

    CEO, Tesla, Elon Musk said in a tweet “To clarify speculation, Tesla has not sold any Bitcoin.”

     

    On Monday, Bitcoin was $42,413.52. It had a 24-hour trading volume of $82,519,008,685. Bitcoin was down 9.75 per cent.

  • Banks Lift Blockage of USSD Transactions on MTN

    Banks Lift Blockage of USSD Transactions on MTN

     

    Commercial banks have reconnected MTN customers earlier denied access to the unstructured supplementary service data (USSD) payment channels.

     

    In a letter seen by TheCable, on Sunday, Karl Toriola, Managing Director And Chief Executive Officer of MTN Nigeria, announced a decision to revert discount offered to banks on airtime sales to 4.5 percent commission.

     

    The mobile network operator (MNO) had reduced banks’ commission from an average of 3.5 percent to 2.5 percent, this led to a disagreement between MTN and commercial banks.

     

    “Our virtual meeting between yourself (Wigwe) and Segun Agbaje (MD of GTBank) on the one hand and myself (Toriola) and Modupe Kadri (chief financial officer of MTN Nigeria) on the other refers,” the letter read.

     

    “In an attempt to resolve the current USSD recharge impasse, given the interventions from our regulators, we hereby agree The Banks revert to the status quo of 4.5% commission.

     

    “However, the banks and MTN Communications Nigeria Plc, shall sit to agree on various options that will result in the reduction in the costs on 6th of April 2021.”

     

    Commercial banks had asked MTN to reverse its action to the old commission or would block MTN airtime recharge services in both mobile banking applications and unstructured supplementary service data (USSD) payment channels.

     

    Due to MTN’s refusal to revert back the commission percentage, commercial banks except Zenith Bank, which is connected directly to the MNO, denied customers access to the USSD platform, leaving many subscribers stranded and frustrated as they were informed to recharge their lines with physical cards.

     

    On Friday, Isa Pantami, minister of communications and digital economy, had said the issue encountered by MTN users through the USSD channel will be resolved soon.

     

    On Saturday, MTN had offered alternative channels for its subscribers to use in recharging their lines such as dialling *904# and *606#, and other electronic payment platforms.

  • Banks Owe Telcos N42bn For USSD Services, Says NCC

    Banks Owe Telcos N42bn For USSD Services, Says NCC

     

    Deposit Money Banks owe telecommunications companies N42bn for services provided by the mobile network operators through the Unstructured Supplementary Service Data, the Nigerian Communications Commission has announced.

     

    Executive Vice Chairman, NCC, Prof. Umar Danbatta, announced this during his lecture at the virtual 2021 edition of the Bullion Lecture.

     

    He explained that the indebtedness of the banks to mobile network operators had been an issue over time, but stressed that the NCC was working hard to address the concern.

     

    Danbatta said, “The issue of the USSD has become an issue between the telcos and the banks. The telecommunication companies provide the infrastructure which the banks leverage on to provide banking services of all kinds.

     

    “Therefore it is expected that for this service someone should pay. No service is free. The investment in infrastructure that is driving the USSD service is a huge investment that the telcos made.”

     

    The NCC boss added, “It is expected that they (telcos) will recoup their investments in order to continue and to expand the service. About N42bn that is owed the telcos has not been paid by the banks for the provision of this service.”

     

    Danbatta said the telecommunications firms could not withdraw their services to the banks because such action would not go down well with the Federal Government.

     

    He said, “The telecommunications companies cannot unilaterally withdraw this service because it will be seen as a subversive act, undermining the digital inclusion strategy of the present government.

     

    “And no government will sit back and watch while services that empower citizens are being tampered with or withdrawn. No government will standby and watch this to happen.”

     

    To address the situation, Danbatta said the NCC would soon engage the DMBs and ensure that the matter was resolved.

     

    “So in the next couple of days, we are poised to engage the banks and ensure we reach an amicable resolution where the first item on the agenda that will feature is the payment of this N42bn accumulated debts to the telecommunications companies.

     

    The NCC boss further stated that it was important for the country to meet the critical requirements needed in order to succeed in its drive towards digital inclusion in Nigeria.

     

    He said digital financial services were offered through the use of a mobile phone, which many residents in rural areas could not afford.

     

    “They (rural residents) need phones that are affordable and therefore we must direct our resource in a manner that will bring affordable handsets to the rural population,” Danbatta stated.