Banking
Cash Shortage at Banks’ ATMs, Branches Persists Despite CBN Threat
By Adedapo Adesanya
Despite the threat by the Central Bank of Nigeria (CBN) to penalise commercial banks that fail to provide cash to customers at their automated teller machines (ATMs) and branches, the issue has persisted.
The governor of the apex bank, Mr Yemi Cardoso, during his speech at the annual Chartered Institute of Bankers of Nigeria (CIBN) dinner in Lagos last Friday, said “We are conducting spot checks across deposit money banks (DMBs) and will impose penalties on institutions effective December 1, 2024.”
Mr Cardoso urged customers to report difficulties withdrawing cash from bank branches, and ATMs directly to the CBN through designated channels, adding the guidelines would be distributed widely to raise public awareness.
“We also urge full regulatory compliance by all stakeholders, including mobile money operators and agents to promote digital transaction channels and improve service delivery,” Mr Cardoso said.
“Financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties,” he added.
Mr Cardoso also noted that the central lender will continue to foster a more cashless policy, adding that this will not restrict it from adequately supplying cash into the country.
“The CBN will continue to maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end. Our focus is ensuring a seamless cash flow for Nigerians while fostering trust and stability in the financial system.”
Business Post reports that banking customers have been faced with a cash deficiency that can be traced back to the twin policies of Naira redesign and cashless policy instituted under the Muhammadu Buhari administration in 2023.
The policies while leading to the wider adaptation of digital channels and a surge in Point-of-Sales (PoS) channel utilisation, led to banks not adequately servicing their ATMS.
Recently, the CBN commenced a mystery shopping exercise and periodic spot checks to Deposit Money Banks (DMBs) in its latest crusade to tackle the hawking of Naira notes.
In a memo signed by Mr Solaja Olayemi, Acting Director, Currency Operations Department of the CBN, banks to whom cash seized from hawkers of cash is traced, will be penalised 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.
On Monday morning (today), this newspaper confirmed that one of the big five lenders in the country with a branch on the Egbeda/Idimu Road in Alimosho Local Government area of Lagos State was paying customers rationing a maximum of N10,000 cash to customers over-the-counter (OTC).
When asked the reason for this, one of the teller point attendant said it was because of shortage of cash allocation to the branch.
By Adedapo Adesanya
The Bank of Industry (BOI) has received a €2 billion loan to boost trade in Nigeria, facilitated by Africa Finance Corporation (AFC), a continental infrastructure solutions provider, acting as global coordinator, lead co-arranger, underwriter, bookrunner, and guarantor.
The transaction is a record global loan syndication for BOI, and marks the largest capital raise in its history, setting a new standard for developmental finance across Africa.
Proceeds of the facility will be used for general corporate purposes including to finance trade and trade-related projects of eligible corporates in Nigeria.
The facility was syndicated at two levels with AFC, Standard Chartered Bank, African Export-Import Bank, First Abu Dhabi Bank PJSC, FirstRand Bank Limited, acting through its Rand Merchant Bank division (London Branch), Mashreqbank PSC, SMBC Bank International PLC, Absa Bank (Mauritius) Limited, Absa Bank Limited (acting through its Corporate and Investment Banking division) and Export-Import Bank of India London Branch acting as part of a senior syndicate, together raising an initial €1.43 billion.
Following this, AFC led a general syndication, through which an additional €447 million was raised, bringing the total transaction to €1.9 billion, representing an oversubscription of 87 per cent.
The facility is expected to further grow to €2 billion.
This global loan syndication is significant for Nigeria and BoI, as the institution was able to successfully tap the international capital market at a time when credit is scarce and prohibitively expensive.
According to an announcement, it highlights the market confidence in BoI and AFC as leading financial institutions, demonstrating the power of collaboration and innovation between African financial institutions.
“This successful syndication is a significant milestone achievement, not only for BOI but for Africa’s financial landscape as a whole. We are proud to have played a central role in this historic global loan syndication, solidifying AFC’s position as a trusted bridge between global investors and infrastructure projects in Africa,” said Mr Banji Fehintola, Executive Board member & Head of Financial Services at AFC.
“Our sincere appreciation also goes to our Joint Coordinator and partner Standard Chartered Bank and all other banks that participated in making this transaction a huge success,” he added.
“This financing, the sixth international capital raising for BOI, is the largest fundraising in our history and the largest syndication in the history of African development finance institutions. A key constant in achieving this success is the continued support of our international funding partners, including AFC.
“We are grateful for the unique role that AFC played to make this transaction a success,“ said Mr Olasupo Olusi, the Managing Director of BOI.
As part of the syndication, AFC leveraged its A3 (stable outlook) investment-grade rating, recently affirmed by Moody’s, to bring together an international consortium of financial institutions.
The transaction aligns with the corporation’s mission to provide pragmatic solutions that close the continent’s infrastructure gap, accelerate industrialisation, and enhance Africa’s economic resilience against global economic challenges.
By Aduragbemi Omiyale
Digital banks in Nigeria, including the popular OPay, Moniepoint and others, have commenced the implementation of N50 stamp duty collected by the federal government.
The fee, known as the Electronic Money Transfer Levy (EMTL), is charged by the federal government through the Federal Inland Revenue Services (FIRS) on transactions above N10,000.
The traditional banks have been charging their customers for this, but not the financial technology (fintech) lenders.
This has made the new-banks to be very popular among Nigerians, who have practically abandoned the traditional financial institutions because of their excessive charges.
In a message to its customers on Sunday, one of the leading digital banks, OPay, said it would begin to deduct N50 for electronic transactions above N10,000 in line with the directive of the government.
“Dear customer, in line with the FIRS, the EMTL applies starting from December 1, 2024,” the notice sent by Opay to its customers, which was seen by Business Post, read.
This newspaper also confirmed that the implementation of the policy has taken effect as transfer above the threshold attracted the N50 levy.
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has announced the launch of a newly designed website— from the same domain name— to go live on Monday, December 2, 2024 (today).
In a statement signed by its spokesperson Mrs Hakama Sidi-Ali, on Sunday evening, the apex bank said the cbn.gov.ng will become operational on Monday and will help ease of access to information and research from the central lender.
“We are pleased to announce the launch of our newly redesigned website (www.cbn.gov.ng), which will be operational on Monday, December 2, 2024.
“The redesigned website introduces a variety of new content, which encompasses a broader spectrum of information regarding the Bank’s mandate.
“Additionally, the website is responsive to mobile devices, facilitating navigation across various web browsers and devices,” the statement said.
It noted that the development was necessitated by feedback from the public.
“The bank is grateful for the feedback provided by the public, which served as a valuable guide for our redesign endeavours.
“We are committed to developing and enhancing the website to facilitate communication.”
“Please follow our different social media channels linked on the website’s home page for more updates,” the statement concluded.
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