Banking

CBN Issues Licences to 5 New Banks to Boost Lending

Published

7 years ago

30/04/2019

By Dipo Olowookere

Five new banks have been issued operating licences by the Central Bank of Nigeria (CBN) to carry out financial services in the country, Business Day is reporting.

Relying on information from those allegedly familiar with the development, the reputable business journal said one of the new banks may commence operations this week.

However, it said most of the lenders are planning to kick off banking operations in the country before August 2019.

One of the new banks, “Globus” is said to be spearheaded by Elias Igbinakenzua, a former Executive Director at a tier one bank.

Business Post reports that in late 2016, Mr Elias Igbinakenzua resigned from Access Bank and in 2017, he became the CEO of First Aluminium Nigeria Plc.

“The Bank (Globus), whose head office is on Sanusi Fafunwa, Victoria Island, may open by May 2nd,” one of the sources quoted by Business Day said.

The second bank would go by the name “Titan” and is said to have secured the services of a former Heritage bank executive director.

Another owner of one of the new banks is said to be Indian – the former owner of Chi Limited who recently sold a majority stake to Coca Cola – and the initial strategy would be to target large Indian and Lebanese clients with investments in Nigeria especially in the manufacturing and other sectors, sources said.

The other banks remain largely anonymous but would be a mix of micro-finance, Merchant and/or deposit money banks, Business Day added.

It was reported that the apex bank is being driven by the need to attract new investments into the sector and serve the country’s over 50 million unbanked and under-banked people, even as current banks have struggled to grow loan books since an economic slump in 2016 caused bad loans to surge.

CBN spokesperson, Mr Isaac Okorafor, did not respond to calls seeking comment.

Also, three bank CEOs declined to comment, as the CBN is yet to go public on the matter.

BusinessDay gathered from sources that most of the capital needed to set up the banks were sourced locally in Nigeria.

The minimum capital requirement for a Regional bank is N10 billion, while for National banks its N25 billion and international Banks N50 billion, according to the Banks and Other Financial Institutions Act (BOFIA).

The capital requirement of microfinance banks, which was amended by the CBN in 2018, is as follows: For a Unit Microfinance bank, the requirement is N200 million, while its N1 billion and N5 billion for a State and National Microfinance bank respectively.

For a merchant bank, the minimum paid-up share capital is currently N15 billion.

Attempting to place a finger on the motivation for licensing five new banks almost out of the blue, one of the sources said, “The CBN will not want to preside over an industry that is shrinking.”

Another said “Nigeria is under-banked and investors are responding, if the CBN wants to grow credit, by N1 trillion, none of the old banks can take it. Banks available are already at capacity, in one way or another.”

The CBN has been somewhat desperate for banks to increase lending to critical sectors but an economy fraught with risks has tamed lending appetite.

Nigerian banks were unable to grow their loan books in the past year, a signal that the macroeconomic environment remains weak and non-supportive for growth.

The 12 largest lenders quoted on the floor of the Nigerian Stock Exchange (NSE) saw combined loans and advances dip by 6.37 percent to N12.34 trillion in December 2018, from N13.18 trillion a year earlier. This compares with a 25.14 percent increase between the 2013 and 2014 financial year.

The CBN is worried about the trend, Governor Godwin Emefiele indicated in the aftermath of the monetary policy committee last March.

To encourage lending to the real sector, the CBN promised to allow banks draw down from their regulatory cash buffers sitting with the apex bank, if the banks gave loans to manufacturers and players in the agriculture sector at single-digit interest rates.

The response has been largely underwhelming, with banks preferring instead to stash cash in double-digit yielding government debt where they take considerably less risk. Even the CBN’s surprise interest rate cut to 13.5 percent after keeping it at 14 percent for over two years, was not able to move the needle on lending.

The banks argue that to increase lending the CBN should instead reduce the Cash Reserve Ratio (CRR) to free up idle funds. The effective CRR in the sector is as high as 40 percent.

Licensing five new banks can pass for the latest strategy by the CBN to boost bank lending, according to a source.

“However, if the problems that hinder the current banks from growing their loan books persist, then even the new ones will struggle,” the third source said.

Total credit to the private sector grew by a meagre 2.2 percent to N24.16 trillion, according to the CBN’s Depository Corporation survey report for February 2019, another indication of weak credit flow in the economy.

Johnson Chukwu, managing director and CEO of advisory firm, Cowry Asset Management Ltd, said the expansion in credit has been going to the public sector as yields remain attractive at between 13 and 14 percent. “The economic recovery rate has been slow and financial institutions

are cautious of booking new Non Performing Loans (NPLs),” said Chukwu.

Sources tell BusinessDay that the CBN feels that some of the current banks may be becoming a little bit removed from the needs of the average customer.

“The banking public has very few options. The bigger the bank the more distant the relationship. There is at worst an oligopoly and at best a duopoly,” the first source said.

BusinessDay learnt that the licensing is a done deal according to the processes involved which may take up to 2 years. This includes sending the name of directors to the Department of State Security

(DSS), Assistant General Manager’s and above being vetted by CBN, offices and branches inspection, staff recruitment, printing of checks and software deployment.

The emergence of the new banks is good for staff, good for signalling and will increase competition in the sector our sources said.

“When you realize CBN will not allow any bank to fail, you realize there is nothing to fear. You can go ahead and request a license,” the second source said.

Banking

Banks to Submit Monthly Reports on Failed Digital Transactions

Published

10 hours ago

24/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to submit monthly reports on failed electronic transactions across digital channels, as part of new compliance measures introduced in its revised Guide to Charges.

The directive was contained in a circular titled Exposure Draft of the Guide to Charges by Banks and Other Financial Institutions in Nigeria, 2026 (The Guide) and signed by the Director of the Financial Policy and Regulation Department, Mrs Rita Sike.

According to the apex bank, Chief Compliance Officers and Heads of Information Technology in financial institutions are required to jointly render electronic reports of all failed transactions conducted via Automated Teller Machines, Point of Sale terminals, mobile channels, web platforms, and other electronic systems.

The circular read, “The Chief Compliance Officer and Head Information Technology shall jointly render monthly reports electronically, of all failed electronic transactions via various e-channels (ATM, PoS, mobile, web/internet and related channels) that originate or terminate in the institution.”

The reports are to be submitted to designated CBN email addresses, reinforcing the regulator’s push for stricter monitoring of service failures across the banking system.

Beyond the reporting requirement, the CBN also introduced broader accountability measures, placing responsibility on top management of financial institutions to ensure strict adherence to the new guide.

Executive Compliance Officers or Managing Directors are mandated to cascade compliance expectations across all business units and ensure that banking systems are configured to apply only approved charges.

Specifically, the regulator directed that Heads of Information Technology must ensure that “all systems configurations only capture and allow posting of charges as permitted and described in this Guide,” while Chief Compliance Officers are to monitor strict compliance with the framework.

The revised guide, effective May 1, 2026, replaces the 2020 version and provides a comprehensive framework for charges across banking and other financial services.

The CBN explained that the review was aimed at promoting a safe and sound financial system, encouraging innovation, and expanding financial inclusion through lower tariffs on micropayments and transactions.

It added that the revised framework would strengthen oversight and accountability, encourage the adoption of electronic payment channels, and accommodate new industry participants.

Business Post also reported that the regulator has raised ATM card fees by 50 per cent to N1,500 and scrapped the monthly maintenance charge.

Banking

CBN Proposes N1,500 ATM Card Fee, N150 e-Dividend Mandate Processing Fee

Published

15 hours ago

24/04/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has proposed that financial institutions operating in the country should charge N150 for the e-dividend mandate processing fee from May 1, 2026.

This was contained in the latest Guide to Charges by Banks and Other Financial Institutions in Nigeria, signed by the Director of the Financial Policy and Regulation Department of the CBN, Ms Rita Sikе.

The move is to promote a safe and sound financial system in Nigeria, accelerate the adoption of innovative financial services, financial inclusion and micropayments/transactions.

The reviewed guide, according to the central bank, provides for an increased range of financial services, encourages development of innovative products, strengthens responsibility for oversight and accountability and promotes financial inclusion through lower tariffs for micropayments/transactions.

It also reviewed some charges for banking services to encourage increased adoption of electronic channels and accommodate new industry participants since the issuance of the 2020 guide.

“In view of the above, the draft guide is hereby exposed to members of the public for their comments/input on the proposed fees contained therein. Comments are to be sent to [email protected] on or before May 08, 2026,” a part of the note stated.

In the draft, the banking sector regulator is suggesting the payment of N1,500 for local debit card issuance and replacement by customers and a $10 annual fee for foreign currency-denominated debit/credit cards.

For on-site ATM transactions, a charge of N100 per N20,000 withdrawal was proposed and N100 plus a surcharge of not more than N500 per N20,000 withdrawal. It emphasised that the surcharge, which is an income of the ATM deployer/acquirer, shall be disclosed at the point of withdrawal to the consumer.

The bank also said that for electronic fund transfers below N5,000, no fee would be collected, but from N5,000 to N50,000, customers would part with N10, and for transfers above N50,000, the fee of N50 would be paid, while for microfinance banks, there would be the settlement bank’s charge plus 10 per cent of the charge.

The CBN noted that this guide applies to commercial banks, merchant banks, Payment Service Banks (PSBs), non-interest banks, microfinance banks, finance companies, Primary Mortgage Banks (PMBs), Development Finance Institutions (DFIs), credit guarantee companies, Mobile Money Operators (MMOs), and any other institution as may be designated by it.

Banking

The Inside Story: How Stanbic IBTC’s EVB Programme is Revolutionising Corporate Banking

Published

2 days ago

23/04/2026

Business Post Contributor

In today’s rapidly evolving business environment, organisations face heightened competition, shifting workforce expectations, and increasing pressure to optimise productivity. Amid these dynamics, one truth has become increasingly clear: employees’ financial well-being is directly tied to organisational performance.

Employees who are financially secure demonstrate greater commitment, higher productivity, reduced absenteeism, and stronger alignment with company objectives. Conversely, financial stress has emerged as a leading contributor to disengagement, declining morale, and weakened performance across all levels of the workforce.

At Stanbic IBTC, we recognise this critical relationship between employee financial health and business outcomes. This insight led us to engineer Employee Value Banking (EVB)—a strategic, comprehensive, and future-proof solution designed to help organisations strengthen their workforce, elevate their value proposition, and drive long-term business sustainability.

EVB is a transformational partnership model aligning employee wellbeing with corporate productivity, risk reduction, and efficiency.

A Holistic, Employee-Centric Banking Architecture

EVB is built on the understanding that employees across varying grades and income brackets have unique financial realities. By offering a robust suite of banking, investment, insurance, and advisory services tailored to diverse needs, EVB empowers organisations to meaningfully enhance their workforce’s financial security and stability.

Key Components of the EVB Suite

Digital Unsecured Personal Loans with Flexible Repayment

Employees gain access to seamless, digitally processed loans that allow them to meet immediate financial needs with ease.

Flexible repayment structures reduce financial strain while supporting responsible borrowing behaviour.

Tailored Savings and Investment Solutions

Through structured savings plans, mutual funds, and diverse investment options, employees are empowered to build wealth over time.

This fosters discipline, long-term planning, and financial resilience.

Pension and Asset Management Services

With Stanbic IBTC Pension Managers and Stanbic IBTC Asset Management, employees benefit from expert retirement guidance, wealth advisory, and long-term financial structuring—ensuring a secure and predictable future.

Comprehensive Insurance Cover (Life, Health & Assets)

Employees and their families enjoy protection against major life risks, including health emergencies, life insurance, and property coverage.

This security enhances peace of mind and reduces workplace anxiety.

Mortgage Support at a Competitive Single-Digit Rate of 9.75%

Homeownership remains a powerful symbol of stability and success.

Through EVB’s highly competitive mortgage solution, 774 families have successfully become homeowners from 2024 to date, demonstrating the program’s profound and measurable impact.

A Structured, Responsible, and Risk-Free Lending Model

One of the core strengths of EVB is its cadre-based lending framework, which aligns all loan offerings with employee grade levels, income bands, and organisational hierarchy. This ensures:

Responsible and sustainable lending behaviours
Protection against over-borrowing
Stronger financial discipline
Greater alignment with corporate HR structures

What distinctly sets EVB apart is its employer-focused risk mitigation. EVB’s structure ensures employers face no risk, making it uniquely designed for seamless adoption compared to standard banking programs.

All loans provided under the program are fully insured, meaning organisations carry:

Zero liability
Zero indemnity exposure
Zero financial risk

This allows HR and management teams to expand their employee value proposition without adjusting internal financial structures or bearing additional costs.

Beyond Banking: Building a Financially Resilient Workforce

Financial empowerment is not achieved solely through products; it requires education, behavioural change, and consistent guidance.

Further differentiating EVB, Financial Fitness Workshops and complimentary Financial Health Checks are embedded as core components, giving employees ongoing support that competitors rarely offer.

These workshops cover:

Personal budgeting and cash flow management
Savings and investment strategies
Smart debt management
Retirement and pension planning
Wealth creation principles

By equipping employees with financial knowledge, organisations reduce anxiety, enhance decision-making, and cultivate a more confident, resilient, and empowered workforce.

A Strategic Partnership That Delivers Sustained Organisational Value

EVB enables organisations to build a healthier, more motivated, and higher-performing workforce.

It is not a product—it is a strategic collaboration that enhances organisational culture, strengthens HR capability, and improves employer brand reputation.

Through EVB, organisations benefit from:

Higher employee engagement
Improved productivity and performance
Reduced financial stress across all workforce levels
Enhanced talent attraction and retention
A stronger, richer reward and well-being structure
A fully digital, modern, and efficient employee banking experience

EVB reflects Stanbic IBTC’s long-standing commitment to supporting organisations by empowering the individuals who drive their success.

Employee Value Banking (EVB) is a pivotal advancement in corporate banking. Where traditional bank–corporate relationships focused on organisational accounts and financial transactions, EVB introduces a holistic, human-centric model that puts employees’ well-being at the core of corporate financial services.

Through EVB, Stanbic IBTC has:

Transitioned corporate banking from a transactional model to a value-driven partnership
Expanded the definition of the corporate customer to include the entire workforce
Integrated banking, pensions, investments, mortgages, insurance, and financial education into a unified ecosystem
Elevated corporate banking into a strategic enabler of productivity, well-being, and business sustainability
Positioned financial well-being as a competitive advantage for modern organisations

EVB has redefined the future of corporate banking, transforming it from a service function into a lever for organisational excellence, employee empowerment, and value creation.

Stanbic IBTC drives this change, enabling businesses to build secure, high-performing workforces.