Connect with us

Economy

Charges on Cash Withdrawals, Deposits Begin Today in Lagos, Abuja

Published

on

cashless policy

Charges on Cash Withdrawals, Deposits Begin Today in Lagos, Abuja

By Modupe Gbadeyanka

The recently reintroduced cashless policy of the Central Bank of Nigeria (CBN) is kicking off today, Saturday, April 1, 2017.

In February 2017, the apex bank announced that it was bringing back charges on cash deposits and withdrawals in a bid to promote its cashless policy.

It had said then that this would first commence in Lagos, Abuja, Ogun, Kano, Abia, Anambra and Rivers States before bringing in other states.

Under the policy, there would be a 1.5 percent charge on deposits on individual accounts from N500,000 above to N1 million, while for withdrawal will attract 2 percent.

However, there would not be charges on individual account for cash deposits and withdrawals less than N500,000.

It had also said for individuals depositing or withdrawing between N1 million and N5 million, they would have to pay extra charge of 2 percent and 3 percent respectively, while for above N5 million will part with 3 percent and 7.5 percent for deposits and withdrawals respectively.

Also, for corporate account holders, deposits and withdrawals under N3 million would be free, while between N3 million to N10 million will pay 2 percent and 5 percent respectively for cash deposits and withdrawals.

Similarly, for deposits and withdrawals between N10 million and N40 million on corporate accounts, customers will be charged 3 percent and 7.5 percent respectively, while deposits or withdrawals above N40 million will attract a charge of 5 percent and 10 percent respectively.

The decision to bring back these charges, according to the CBN, was taken after the 493rd meeting of the Bankers Committee, which took place on February 8, 2017.

It said it was agreed at the meeting that the cashless policy charges on withdrawal and deposit should be “extended to the 30 remaining states of the federation” after practising it in Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT.

According to a statement issued by the CBN then, “the new charges will take effect from April 1, 2017, in the existing cash-less states (Lagos, Ogun, Kano, Abia, Anambra, Rivers and the FCT,” while the policy will be “implemented with the charges taking effect on May 1, 2017 in Bauchi, Bayelsa, Delta, Enugu, Gombe, Imo, Kaduna, Ondo, Osun and Plateau States.”

From October 1, 2017, the policy will commence in Borno, Benue, Ekiti, Cross- River, Kebbi, Kogi, Kwara, Yobe, Sokoto and Zamfara States.

The apex bank had explained that “the income generated from the processing fees charged above the allowable cash transaction limits shall be shared between the CBN and the banks in the ratio of 40:60.”

Meanwhile, some Nigerians have expressed mixed feelings on the new policy. While some see it as a good idea, others disagree.

“How do you force people into electronic banking when the system is not fully ready for it?” a customer of one of the banks, who identified himself as Mr Adelakun Tosin, queried.

“I believe this is a good move, we need to embrace the CBN’s cashless policy. It is good for our security,” another said.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Economy

Jumia, Churches, POS Operators, Others Reject Old Naira Notes

Published

on

old Naira notes

By Dipo Olowookere

One of the leading e-commerce companies in Nigeria, Jumia, has announced that from Monday, January 30, 2023, it will no longer accept the old Naira notes as a form of payment for goods purchased on the platform.

In a message to its customers on Thursday, the company said this action followed the decision of the Central Bank of Nigeria (CBN) to stop the use of the N200, N500, and N1,000 for financial transactions in Nigeria from February 1, 2023.

On October 26, 2022, the governor of the CBN, Mr Godwin Emefiele, announced that the three denominations would be redesigned. The new banknotes were introduced into circulation on December 15, and Nigerians were asked to return the old notes on or before January 31, 2023.

In order not to miss the deadline, and with the central bank insisting that it would not extend the deadline, Jumia has said its customers have till Sunday to pay for its goods and services with the old notes.

“From Monday, January 30, 2023, Jumia Delivery Associates will not be able to accept the old notes of N200, N500, and N1,000 sequel to the directive by the Central Bank of Nigeria (CBN).

“Should you wish to pay by cash, our delivery associates will only accept the new series of notes.

“Alternatively, you can find details on how to prepay on Jumia using JumiaPay or call us if there are any further questions.

“We will communicate further in case of any change from the federal government or central bank,” the notice from the firm, which was seen by Business Post, stated.

Meanwhile, a few churches in Lagos have asked their members not to pay tithes and offerings with the old banknotes from Sunday, January 29, 2023, due to the CBN directive.

“In reference to CBN’s directive and policy on old Naira notes, we hereby appeal to members not to come to church starting from this Sunday with old Naira notes (200, 500 & 1000).

“Please kindly make your payments (tithes, offerings, project donations and other payments) in new Naira notes.

“You can as well make an online transfer to the designated accounts (check the flier for details).

“Please share this message with members that are not on this platform,” a message from one of the parishes of the Redeemed Christian Church of God (RCCG) said.

Also, checks by this reporter indicated that some POS operators have said they would no longer accept the old notes from their customers from Saturday, January 28, 2023.

“I will not accept cash deposits with the old notes from Saturday because I know the banks will be filled up next week with people who want to deposit their cash.

“This morning, I was at one of the banks to deposit the cash with me, but the crowd there scared me.

“The banks were still giving customers the old notes. I am just confused about the situation. We do not have the new notes. Almost all the ATM terminals in this area are not dispensing cash to customers,” a POS operator in the Egbeda area of Lagos, Mrs Modupe Adediran, told Business Post.

Similarly, a trader at Computer Village, Ikeja, Lagos, Mr Ikenna Okechukwu, informed this reporter that he has stopped accepting the old banknotes from his customers.

However, some commercial bus drivers in Lagos said they will still accept the old banknotes next week.

“I don’t have any issue with the money. I have a strong belief that the central bank will extend the deadline. The announcement will be made next week,” a danfo driver in Ikeja, who identified himself as Mr Tajudeen, said.

Continue Reading

Economy

SFS Fund Mobile App Sees 300% Rise in Downloads

Published

on

SFS Fund Mobile App

By Aduragbemi Omiyale

The mutual fund investment app of SFS Capital, the SFS Fund Mobile App, has recorded a 300 per cent uptick in downloads less than one year after it was launched.

The SFS Fund Mobile App has exciting features that have endeared it to new and existing users. The app has an easy-to-use interactive dashboard; it also allows retail investors with N5,000 to start an investment.

In addition, users can make direct transfers from their banks to their virtual accounts and have access to third-party payments to make payments directly into users’ investment accounts.

In the second half of 2022, the SFS Fund Mobile App was launched to enable individuals to begin their investment journey with ease.

“There’s no doubt that investment apps became really popular last year, and we are extremely excited about the growth of the SFS Fund Mobile App and how it is playing a role in encouraging more individuals to start their investment journey with Mutual Fund,” the Managing Director and CEO of SFS Capital, Mr Patrick Ilodianya, said.

Globally, there has been a rise in the usage of retail investment apps. The COVID-19 pandemic induced pragmatic investment decisions by individuals, coupled with increased accessibility to mobile, enabled more individuals to start investing.

The SFS Fund Mobile App is apt for individuals who need a trustworthy, secure and easy platform for high-yield investments in mutual funds.

The app is available for download on Android and iOS. Investments made via the app are managed by seasoned investment experts in the Nigerian financial market who ensure that the returns paid to investors range from 11 per cent to 17 per cent per annum.

The fund has consistently maintained an “AA+” rating which is the 2nd highest possible rating for a mutual fund, and has a highly competitive return on investment and no pre-termination charge.

Investment in mutual funds is a proven recipe for wealth creation, given the opportunities and flexibility it presents to investors.

“This year, we will like to encourage more individuals to make a more decisive move concerning their finances. Investing in mutual funds via the SFS Mobile Fund App makes it possible for individuals to begin to build wealth, especially in an economy like ours that is characterised by downturns and uncertainties,” Mr Ilodianya added.

The SFS Mobile Fund App is part of SFS Capital’s digitisation narrative as the investment management company builds on the legacy it has as a leading Nigerian non-bank financial institution.

Continue Reading

Economy

Julius Berger Offers for Sale N30bn Commercial Paper in Two Series

Published

on

Julius berger

By Dipo Olowookere

Commercial paper worth N30 billion is being offered for sale to investors by Julius Berger Plc in two series to raise funds for its operations.

Business Post gathered that the exercise commenced on Tuesday, January 24, 2023, and is expected to end on Monday, January 30, 2023.

The company, which is a leading player in the construction industry, is selling the debt instrument across two tenors, 182 days and 267 days.

The discount rate of the 182-day paper is 13.09 per cent, with an implied yield of 14.00 per cent, while the 267-day paper has a discount rate of 13.52 per cent and an implied yield of 16.00 per cent.

To buy the commercial paper of the construction firm, subscribers will have to pay at least N5 million. This can be done through registered brokerage companies.

In the 2021 fiscal year, Julius Berger grew its revenue by 40.13 per cent to N338.8 billion from N241.8 billion in 2020, as its net profit jumped by 574.96 per cent to N8.3 billion from N1.2 billion in the preceding accounting year.

Julius Berger is a leading Nigerian company offering holistic services covering the planning, design, engineering, construction, operation and maintenance of buildings, infrastructure and industry projects in Nigeria.

Since the execution of its pioneer project in 1965 by Julius Berger Tiefbau AG, a related entity, Julius Berger has played a pivotal role in the development of Nigeria’s industrial and civil infrastructure.

It was incorporated as a private company in 1970 and was later converted to a public company and joined the Nigerian Exchange (NGX) Limited in 1991.

Julius Berger has completed over 600 buildings, 20 industrial facilities and 130 infrastructure projects in Nigeria.

Infrastructure projects carried out by the firm include the construction of roads, bridges, seaports, airports, automobile assembly plants, dams, factories, petrol stations, independent power plants, development of the capital city (Abuja), amongst other projects.

Some of the landmark projects successfully executed by the company were the recent construction of the landmark Second River Niger Bridge aimed at strengthening socio-economic development across the East-West region, the construction of the Second Mainland Bridge (Eko Bridge), the repair of the Onitsha bridge in seven weeks, construction of the 500m long and 25m high Laminga Dam, with spillway system, water-treatment plant and 48km pipeline distribution network, completion of construction work for Nnamdi Azikiwe International Airport, Abuja, etc. The Company specialises in executing complex works requiring the highest level of technical expertise and Nigeria-specific know-how.

Julius Berger has seven subsidiaries that enable it to complete multifaceted projects at the highest level of performance. This structure allows the organisation to effectively manage and fulfil construction projects, starting from the initial idea through to planning, design, engineering, construction, operation and maintenance.

Julius Berger, together with its subsidiaries, is guided by a value system which has, over time, defined and differentiated its business, thereby setting a benchmark in the Nigerian construction industry. Julius Berger offers its industrial clients forward-looking solutions that preserve the high value of assets and guarantee their sustained availability.

Continue Reading
%d bloggers like this: