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BVN: Reps to Investigate Unclaimed Trillions of Naira in Banks

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Nigerian Banks

By Aduragbemi Omiyale

The House of Representatives has taken a step to investigate the alleged trillions of Naira trapped in commercial banks because owners of the funds have failed to link their bank accounts with the Bank Verification Number (BVN).

In February 2014, the Central Bank of Nigeria (CBN) introduced the BVN and gave bank customers till June 2015 to link their accounts with the BVN.

The scheme was introduced to check and combat money laundering, illicit financing and duplications in the ownership of bank accounts used for fraud.

But almost eight years after the policy was introduced by the apex bank, several bank account owners are to link their accounts with the BVN, meaning they have not been able to access funds in their accounts.

On Thursday, this issue was raised at the lower arm of the National Assembly in a motion moved by a lawmaker, Mr Dachung Bogos.

According to the green chamber of the parliament, about 45.85 million bank accounts are yet to be linked to BVNs as reports by the Nigerian Inter-Bank Settlement Systems (NIBSS) of June 23, 2021, stated that the total number of bank accounts in Nigeria as at May 2019 was 122.07 million, while active accounts as at May 2020 stood at 72.94 million.

It was claimed that suspicious monies running into trillions of Naira were left unclaimed in various banks across the country because their owners had failed to register for the BVN or link to existing ones where appropriate and that commercial banks have flagrantly continued to hold on to the unclaimed monies longer than necessary against the directives of the CBN.

The lawmakers argued that despite the introduction of BVN to curb the misappropriation of funds in the financial sector, about 71 million customers still use their accounts without the compulsory requirement from NIBSS.

When the market was debated during plenary, it was agreed that there is a need to constitute an ad-hoc to look into the suspicious and unclaimed funds in commercial banks as well as unremitted funds collected by commercial banks on behalf of agencies and departments of the federal government.

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Banking

Banks Risk N150m Fine for Giving Hawkers New Naira Notes

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currency hawkers

By Modupe Gbadeyanka

Any bank caught supplying minted Naira notes to currency hawkers will have to pay a fine of N150 million, the Central Bank of Nigeria (CBN) has warned.

In a circular issued over the weekend by the acting Director of Currency Operations Department of the central bank, Solaja Olayemi, it was stated that it was becoming embarrassing that new banknotes are hawked at social events when most Nigerians are unable to get cash from Automated Teller Machines (ATMs) of banks or over-the-counter.

The banking system has witnessed shortage of cash for a while, with most ATMs not dispensing cash to customers despite efforts by the regulator to address the situation.

In the notice, the CBN said the distribution of freshly minted Naira notes illegally to currency hawkers will attract a penalty of N150 million per branch involved.

The apex bank disclosed that to curb the illegal practice, it has ramped up enforcement measures, including spot checks at banking halls, ATMs, and mystery shopping at locations linked to currency hawking.

“Any erring deposit money banks or financial institutions that is culpable of facilitating, aiding or abetting, by direct actions or inactions, illicit flow of mint banknotes to currency hawkers and unscrupulous economic agents that commodify Naira banknotes, shall be penalised at first instance N150 million only, per erring branch and at later instances apply the full weight of relevant provisions of BOFIA 2020,” a part of the circular stated.

The notice stressed the importance of banks strengthening their internal controls, particularly in cash management at branches and during teller operations.

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CBN Insists Old, New Naira Notes Remain Valid Beyond December 31

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By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.

There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.

But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.

According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.

The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.

She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.

“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.

“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.

“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.

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Access Bank to Acquire 100% Equity in South Africa’s Bidvest

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By Adedapo Adesanya 

Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.

The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.

This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.

The  agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.

Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.

As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.

Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.

This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).

Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.

The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.

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