By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has published some phone numbers citizens can call to report any bank that fails to give them cash over-the-counter or at Automated Teller Machines (ATMs).

In a circular, the banking sector regulator said cash has been made available to lenders to disburse to their customers, saying they have no reason to do so.

DMBs are directed to ensure efficient cash disbursement to customers OTC and through ATMs as the CBN will intensify its oversight roles to enforce this directive and ensure compliance,” a part of a circular signed by acting Director of Currency Operations, Solaja Mohammed Olayemi; and the acting Director for Branch Operations, Isa-Olatinwo Aisha, stated.

It encouraged members of the public who are unable to obtain cash at their banks to “report these instances using the designated reporting channels and format provided,” saying it will “assist the CBN in addressing issues hindering the availability of cash and further improve currency circulation.”

They are to reach the central bank through designated phone numbers of the CBN branch in the state where the incident occurred or via email.

According to the circular, the complaints should be sent with “the relevant details which shall include account name/name of the DMB/amount/time and date of incidents, amongst others.”

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 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.