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CBN Introduces Two New Instruments for Non-Interest Banks

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By Dipo Olowookere

The Central Bank of Nigeria (CBN), in a bid to aid liquidity management and deepen the financial  system,  has introduced two new financial  instruments called the Funding  for  Liquidity  Facility (FfLF) and Intra-day Facility (IDF) at its window, for  access  by licensed Non-Interest Financial  Institutions (NlFls).

A statement issued by the apex bank explained that the Funding for Liquidity Facility (FfLF) allows the CBN to provide a liquidity facility on overnight basis only and to be terminated on next business day.

According to the statement, authorized Non-Interest Financial Institution (NIFI) will provide eligible securities to the CBN as collateral for the facility.

It said the value of collateral will be a minimum of 110 percent of the value of the facility.

For  example, if a NIFI wishes to take a FfLF of N10 billion, it would be required  to provide  eligible security collateral worth N11 billion (that is N10 ” 1.1=N11 billion).

“The CBN shall specify acceptable collateral(s) from time to time. These shall include, but not limited to the following securities. CBN Safe Custody Account (CSCA) Deposit, CBN Non-Interest Note (CNIN), CBN Asset-Backed  Security  (CBN-ABS), Sukuk (that  has received liquidity status from the CBN), Warehouse Receipt(s) as provided in the CBN Act 2007, and any other collateral designated by the CBN that does not contravene the CBN guidelines  for  NIFI’s operations.

“The transaction shall be at a zero per cent interest rate.

“The opening hours for FfLF shall be between 2.00pm — 3.30pm, and terminated on commencement of next business day.

“At maturity, the transaction unwinds and the CBN receives back its funding and returns the collateral to the NIFI.

“Failure to provide adequate funding in the account for the un-winding of transaction at maturity, the Bank (CBN) shall rediscount the pledged securities at par and recover the facility amount and return the net value to the NIFI.

“The Market Support Committee (MSC) may approve an administrative charge in relation to the facility as it deems fit (in accordance with Section 4 (I) of the “Guidelines for the Operation of NIFI instruments by the CBN)”.

“The determination of the administrative charge would be based on the cost borne in providing the facility, which includes communication/correspondence cost; Printing/Stationary cost; and any other direct and actual cost(s) that do not contravene the principles of non- interest banking as provided in the CBN guidelines,” the apex bank said in the statement.

It added that the NIFI must be either in clearing and have a temporary debit balance and / or have a liquidity problem.

For the second instrument, the Intra- day Facility (IDF), the statement said the CBN will provide an Intra-day Facility (IDF) for settlement same business day and authorized NIFI shall provide eligible securities as collateral for the facility.

Also, the value of eligible securities shall be a minimum of 110 per cent of the value of the intra-day facility required by the NIFI.

For example, if a NIFI wishes to take an IDF of N10 billion, it would be required to provide eligible security collateral worth N11 billion (that is, N10  * 1.10  = N11 billion)

In addition, the CBN shall specify acceptable collateral(s) from time to time, which shall include, but not limited to CBN Safe Custody Account (CSCA) Deposit, CBN Non-Interest Note (CNIN), CBN Asset-Backed Security (CBN-ABS), Sukuk (that has received regulatory treatment by the CBN), Warehouse Receipt(s) as provided in the CBN Act 2007, and any other collateral designated by the CBN that does not contravene the CBN guidelines for NIFI’s operations.

“The operating hours for the IDF shall be between 9.00 a.m. and 2.30 p.m.

“Repayment of the IDF shall be between the hours of 10.00 a.m.  and 3.00 p m.  each business day.

“At termination, the transaction unwinds and the CBN receives back its funding and returns the collateral securities to the NIFI,

“In the event of failure to repay the IDF as and when due, the CBN shall rediscount the pledged securities at par and recover the facility amount and return the net value to the NIFI.

“The Market Support Committee (MSC) may approve an administrative charge in relation to the facility as it deems fit (in accordance with Section 4 (I) of the “Guidelines for the Operation of NIFI instruments by the CBN)”.

“The determination of the administrative charge would be based on the cost borne in pr0viding the facility, including but not limited to communication/correspondence cost; Printing/Stationary cost; and any other direct and actual cost(s) that do not contravene the principles of non- interest banking as provided in the CBN guidelines,” the statement said.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Banking

Applications Open for GTCO ‘Take on Squad’ Hackathon 3.0

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Squad logo

By Dipo Olowookere

Tech enthusiasts interested in participating in the Take on Squad Hackathon, organised by Guaranty Trust Holding Company (GTCO) Plc, can now enter the contest via the official portal at https://squadco.com/hackathon.

The programme enters its third edition in 2026, and the theme for this year is Smart Systems: The Intelligent Economy, according to a statement issued by the organisers.

The hackathon brings together developers, designers and entrepreneurs across Nigeria in a collaborative environment to build practical solutions across key sectors, including financial services, healthcare, commerce and digital inclusion.

Participants are challenged to design and build intelligent, data-driven solutions that transform how communities engage with money.

It is part of the organisation’s commitment to fostering innovation, empowering talent, and supporting the development of technology-driven solutions that address real-world challenges across Africa.

 “Today’s dynamic, digitally driven world demands continuous innovation, which is shaping how economies grow, how businesses scale, and how societies evolve.

“Through Take on Squad Hackathon, we are deliberately investing in the ideas and talent that will define the future.

“Our objective is not simply to encourage innovation, but to enable its translation into scalable solutions that deliver real and measurable impact.

“This reflects GTCO’s role as a financial services platform that connects capital, capability, and creativity to drive sustainable progress,” the Managing Director of HabariPay, Ms Eduofon Japhet, stated.

The social coding event remains a cornerstone of HabariPay’s mission to foster creativity and problem-solving among emerging tech talents. Competing teams will leverage Squad’s advanced APIs to create scalable digital tools that address everyday challenges faced by businesses and individuals.

Through initiatives such as this, GTCO continues to position itself at the intersection of finance, technology and enterprise, actively shaping the future of digital transformation in Africa.

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Banking

Easter: Ecobank Assures Customers Uninterrupted Banking Services

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By Dipo Olowookere

Banking services will not be interrupted throughout the Easter public holidays, from Friday, April 3, to Monday, April 6, 2026, for any reason, Ecobank Nigeria has assured its customers.

In a message over the weekend, the member of Africa’s leading pan-African banking group, Ecobank Transnational Incorporated, said customers would continue to enjoy quality service delivery during the period.

It noted that its secure and robust digital platforms would remain fully operational to support financial activities during the festive period.

All digital channels, including the Ecobank Mobile App, Ecobank Business App, USSD *326#, Ecobank Online, OmniPlus, Omnilite, EcobankPay, Ecobank Cards, ATMs, PoS terminals, and over 35,000 Ecobank Xpress Point agent locations nationwide, will remain accessible throughout the holiday, the financial institution further said, urging customers to conveniently conduct transactions at any time using this wide range of digital solutions.

Ecobank customers were encouraged to maximise the bank’s alternative channels for transfers, bill payments, airtime purchases, card services, and account management.

They were also advised to stay vigilant by shopping only on trusted websites; avoiding the sharing of PINs, passwords, and one-time passwords (OTPs); refraining from banking on public Wi-Fi networks; being cautious of urgent or emotionally charged messages; and regularly monitoring their account activity.

“Customers will continue to enjoy a full bouquet of services during the holiday, including local and international funds transfers, bill payments, airtime top-ups, merchant payments, balance enquiries, account statements, and cardless cash withdrawals via ATMs,” the Head of Products & Analytics, Consumer & Commercial Banking at Ecobank Nigeria, Mr Victor Yalokwu, stated.

“We understand that festive seasons come with increased financial activity, and our priority is to ensure our customers enjoy fast, reliable, and secure banking wherever they are.

“Our digital channels are designed to support uninterrupted transactions, and we have strengthened our systems to guarantee optimal performance throughout the Easter break,” he added.

Mr Yalokwu noted that, “Ecobank remains committed to providing innovative financial solutions and exceptional customer service. We wish all our customers and partners a peaceful and joyful Easter celebration.”

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Banking

Polaris Bank to Limit Access to VULTe for Four Days

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Polaris Bank Fashion Souk

By Dipo Olowookere

Customers may have difficulty accessing the digital platform of Polaris Bank, known as VULTe, during the Easter holidays from Friday, April 3, to Monday, April 6, 2026.

This is because the financial institution is carrying out system maintenance on the platform in its effort to ensure users enjoy a better banking experience.

In a notice over the weekend, the lender said “access to VULTe may be limited,” but it provided an alternative, which is the PolarisXperience.

Polaris Bank, which expressed regret over “any inconvenience” this action may cause its customers, said the “scheduled system maintenance” would happen from 10 pm to 8 am daily, promising that normal service would return after the maintenance.

“In continuation of our commitment to delivering a seamless and improved banking experience, we will be conducting a scheduled system maintenance during the Easter holidays.

“During this period, access to VULTe may be limited. We have provided an alternative channel, PolarisXperience:

“Please go to our website to onboard or use it as an existing user. You can also use this link: (https://elogin.polarisbanklimited.com).

“We regret any inconvenience and appreciate your understanding. Normal service will resume after the maintenance,” parts of the notice seen by Business Post read.

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