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CBN Puts Unbanked Population @ 37%

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Barely two years to the 2020 target to reduce unbanked Nigerians to 20 per cent the Central Bank of Nigeria (CBN) has said the country’s unbanked population currently stands at 37 per cent.

Mr Dipo Fatokun, Director, Banking & Payment Systems, CBN, stated this at the third Annual Banking Security Summit organised by MAXUT Consulting in partnership with OneSpan, global data security company in Lagos.

Fatokun recalled that the apex bank in 2010 in Mexico made a commitment to reduce the population of unbanked Nigerians to at least 20 per cent by 2020.

“We made a commitment in Mexico then to reduce the number of unbanked to at least 20 per cent by 2020, then in 2010 we observed that over 46 per cent of bankable Nigerians didn’t have access to financial services.

“This was a major concern to the CBN and we made a commitment that in 10 years time, we would reduce the figure to far below 20 per cent.

“Today it’s not a good story because we have not done much, less than two years to 2020, at the last count we are just 37 per cent. A lot of work needs to be done,” Fatokun said.

Fatokun, who was represented by Mr Musa Jimoh, CBN Deputy Director, Banking & Payment Systems Department, said the apex bank was still committed to reducing the country’s unbanked population.

He said the move was part of the bank’s financial inclusion strategy aimed at ensuring greater participation in the nation’s financial sector.

Delivering a key note address on “Preparing for Open Banking in Nigeria,” Fatokun said the survey conducted then showed banking penetration was relatively low due to lack of access to financial services and cost of banking services.

He said people were afraid to bring their monies to banks because of banking charges, and that complex experienced in opening of accounts contributed to the trend.

According to Fatokun, the apex bank had introduced several policies to promote financial inclusion in the country such as mobile money to enable banks provide banking services to the poor.

He said the CBN also had a review of bank charges to reduce with a view to reducing them as well as the introduction of super agents.

Fatokun said the apex bank also reviewed Know Your Customer guidelines to tone down the requirements for opening Tier 1, Tier 2 and Tier 3 bank accounts to promote financial inclusion.

He noted that no nation could progress or truly develop if majority of its population was under-banked or had no access to financial services.

Speaking on open banking, he said the concept had been democratised, and that the investments of Nigerian banks in technology was good enough to designate them as technology companies.

Fatokun promised that the CBN would continue to work with other countries to understand how to grow the country’s financial system.

He stated that the apex bank would support FINTECH to enable it provide a very suitable banking ecosystem.

“For our system to be recognised we have to key into global trends. Right now, as we speak, we have set up some committees to look at open banking innovation and others,” Fatokun said.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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