Banking
FX Crisis: FG Gives Ultimatum to Deposit Dollar Cash or Risk Sanctions
By Modupe Gbadeyanka
Nigerians living in the country have been given a nine-month grace period to return all Dollar cash in their possession to the financial system or risk being punished.
This ultimatum was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, when he briefed journalists on the outcome of the National Executive Council (NEC) meeting chaired by the Vice President, Mr Kashim Shettima, on Thursday in Abuja.
It is believed that this new move is part of the strategies the federal government is taking to address the incessant foreign exchange (FX) crisis depleting the value of the Naira against the Dollar in the currency market.
The government is planning to mop up Dollars beyond the legal limits outside the formal banking system since it is not the legal tender in Nigeria.
“There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank (of Nigeria), a programme, starting today, October 31, and lasting nine months, that will allow people to bring in cash that is outside the banking system.
“Therefore, it is unsafe, it is unsecured and it is outside of legal limits. They will allow forbearance to bring dollar cash. Let me emphasise once again that it is to bring dollars that they are holding outside the system; to be able to bring them in and credit them to their bank accounts, as long as it is not proceeds of crime or illicit money. There will be no penalty, there will be no taxes, and there will be no questions.
“They just meet the normal Know Your Customer criteria of banks and they have an opportunity to bring in those funds, make them safe, make them secure, and make them available through normal economic activity.
“The details of that, the guidelines of that, will be released; first of all, the announcement by the Ministry of Finance and the guidelines will be followed very quickly by the central bank.
“That is an opportunity, not just for people who would normally like to comply, to be compliant with the laws and normal business practice, but of course, it gives us an opportunity to bring those dollars from where they are doing nothing to where they are within the financial system; they add to our reserves, and of course can help with the exchange rate,” the Minister said yesterday.
Banking
We’re Committed to Partnerships to Drive Sustainable Growth—Access Bank
By Modupe Gbadeyanka
The chief executive of Access Bank Plc, Mr Roosevelt Ogbonna, has expressed the commitment of the company to building partnerships that drive sustainable growth.
Speaking when the lender hosted the President of Germany, Mr Frank-Walter Steinmeier, in Lagos last week, he said the organisation will always leverage its deep expertise in cross-border banking and market integration to the advantage of its customers.
“Nigeria’s position as Germany’s second-largest trading partner in Africa reflects the mutual benefits of this relationship.
“By leveraging our deep expertise in cross-border banking and market integration, Access Bank is committed to building partnerships that drive sustainable growth, innovation, and economic advancement across the continent,” Mr Ogbonna said while addressing stakeholders at a roundtable organised to welcome the German leader.
Last week, Mr Steinmeier made his first official visit to Nigeria and was welcomed by President Bola Tinubu.
President Steinmeier’s visit showcased Germany’s commitment to fostering economic partnerships in the region.
His Lagos agenda featured a landmark visit to Access Bank, as well as engagements with Nigerian startup founders and German-Nigerian business representatives to explore opportunities for trade and investment.
A central feature of the engagement at Access Bank was a business roundtable hosted by Access Bank’s leadership team and its German Desk.
The roundtable brought together German and Nigerian stakeholders, with discussions focused on two key areas: finance and energy, both of which are crucial to bolstering economic growth and innovation in the region.
President Steinmeier also received remarks from Roland Siller, CEO of DEG (German Development Bank), who elaborated on the financial synergies and products DEG provides to German and Nigerian businesses alike.
Access Bank’s German Desk, led by Sebastian Barroso da Fonseca, marked its sixth anniversary this year and has become a cornerstone for German and European businesses operating in Sub-Saharan Africa.
The Desk has provided critical support to over 100 clients, offering end-to-end financial solutions, including local funding facilitation, cash management, and seamless repatriation of funds to corporate headquarters. With operations spanning Nigeria, Angola, Ghana, South Africa, and beyond, the Desk has played an instrumental role in enabling businesses to navigate complex financial landscapes in Africa.
The engagement concluded with a Networking Reception at Access Bank’s headquarters, where delegates and stakeholders had the opportunity to engage and strengthen ties further.
Despite global challenges, Africa remains the fastest-growing economic region, with its GDP rising by 30 per cent over the past decade and average annual growth rates exceeding 5 per cent.
As a key player in the continent’s economic outlook, Nigeria continues to attract interest from global investors, and Germany has emerged as a critical economic partner in this regard.
Access Bank has strategically positioned itself as a gateway for trade and investment, leveraging its growing international footprint across 24 countries in Africa, Europe, and Asia to facilitate cross-border collaboration.
Banking
Ecobank, Afreximbank Simplify Trade, Compliance for African Businesses
By Modupe Gbadeyanka
The duo of the African Export-Import Bank (Afreximbank) and Ecobank Group has joined forces to enable African businesses to benefit from seamless shared services.
Based on the deal, the two organisations will integrate their respective platforms, the Single Market Trade Hub of Ecobank and the MANSA Digital Repository Platform of Afreximbank for smooth trade and compliance.
It was gathered that users of the Single Market Trade Hub would easily leverage MANSA’s comprehensive database for efficient know-thy-customer (KYC) and customer due diligence (CDD) checks while MANSA platform users would, in turn, be able to directly connect to the Single Market Trade Hub to explore trade opportunities to expand their businesses across Africa.
This collaboration will enable Ecobank and Afreximbank to provide a central solution to the key challenge of KYC compliance and access to business across 35 countries in Africa.
The improved interoperability is expected to further streamline cross-border trade and compliance in Africa, fostering greater financial and economic integration on the continent.
The Ecobank Single Market Trade Hub connects registered businesses across Africa on a single platform, helping them benefit from opportunities in the unified market of 1.4 billion people created by the African Continental Free Trade Agreement (AfCFTA).
It serves as a one-stop repository for the AfCFTA by providing small and medium-scale enterprises (SMEs) and corporates with insights about the agreement while its online match-making feature enables importers and exporters to upload their profiles and showcase goods and services they offer, or wish to source, with the aim of finding partners within Africa.
Once a match is found, connections are made via the platform and the transaction can be concluded by leveraging Ecobank’s trade and payment solutions in 35 African markets.
The MANSA Digital Repository Platform is a one-stop-shop for due diligence matters on all African entities.
As a centralised digital repository, MANSA seeks to eliminate information asymmetry and to increase intra-African trade and trade with the rest of the world.
It drives and promotes good governance culture among African SMEs and creates visibility for their businesses while also supporting African entities to expand, diversify and add value to their export products at both the local and international levels.
Entities onboarded unto MANSA are allotted an Africa Entity Identifier (AEI) code which enables them to leverage other Afreximbank products and initiatives.
MANSA is also a key digital solution at the Africa Trade Gateway (ATG) marketplace which houses a suite of digital platforms designed as a single window to enable Afreximbank to better deliver on its mandate, providing critical services to support and promote intra-African trade and the implementation of the AfCFTA.
The platform enables African entities to accelerate their business activities at the ATG marketplace by working with verified information on trusted counterparties.
Banking
CBN Fixes N100,000 as Maximum Daily Cash Withdrawal Via POS
By Modupe Gbadeyanka
As part of measures to promote its cashless policy, the Central Bank of Nigeria (CBN) has directed Point-of-Sale (POS) agents not to pay more than N100,000 as cash to each customer per day.
The banking sector regulator also restricted the POS operators not to pay more than N1.2 million per day as cash to customers, adding that customers may not withdraw more than N500,000 per week as cash.
To ensure accountability, the CBN has mandated that all agency banking transactions must be conducted exclusively through float accounts maintained with the principal institutions.
It also directed that agent banking services be separated from other merchant activities, with agents required to use the approved Agent Code 6010 for transactions.
In a circular dated December 17, 2024, the central bank noted these efforts are to ensure uniform operational standards, combat fraud, and enhance the use of electronic payment systems in agency banking operations.
The CBN ordered that, “All principals of agents are to comply with the following directives immediately,” in the circular signed on behalf of its Director of the Payments System Management Department, Mr Oladimeji Taiwo, and directed at Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents.
“Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week; Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer; Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00,” the notice added.
The central bank advised all stakeholders to adhere strictly to the directives to ensure the smooth implementation of the policy and contribute to the advancement of Nigeria’s cashless economy.
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