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CBN to Use BVN to Blacklist Loan Defaulters

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Bankers’ Committee, the body of bank chiefs, said it plans to use the Bank Verification Number (BVN) of customers to blacklist loan defaulters from accessing further loans in the nation’s banking system.

 

The plan to blacklist loan defaulters came on the heels of the Bankers’ Committee’s decision to increase financial access to Nigerians especially operators in the agricultural value chain and the Micro, Small and Medium-scale Enterprises, as part of the efforts to grow the economy and create more jobs.

 

Mr. Godwin Emefiele, governor of CBN, said that “We do expect them (customers who take loans) to meet their own side of the bargain because we have a credit registry; their names will go into the black book if they don’t pay. If their names go into the black book if they don’t pay, it means they have ruined their credit ratings. This is because  we also agreed at this meeting (the Bankers’ Committee) that we are going to raise the standard of credit bureau and credit reporting in this country.

 

The CBN governor said,  “We are going to raise the standard to a point where there will be credit scoring for people who take bank loans. And when you are scored low or you are scored zero, we are going to use the BVN to block you from having access to any finance in the Nigerian banking or financial services industry.”

 

According to the CBN governor, the need to increase finance access to the agriculture and the MSMEs segments to grow the economy is imperative, stating that the SMEs constitute 95 per cent of the businesses in the country.

 

Emefiele said no amount had been disbursed from the N26bn Agric, SME Fund in the last one year of its existence.

 

As a result, he said the Bankers Committee had decided to re-evaluate the requirements for accessing the fund, in order to make it easier for more people to access it.

 

According to him, there are plans to ensure that at least N13bn is disbursed to about 100,000 MSMEs before the end of February 2018.

 

Listing some of the reviews made to the N26bn fund, Emefiele said, “First, it would no longer be equity fund and we agreed that we should tweak it so that it would be some form of preference share arrangement or like a debt structure which makes it easy for those who want to access it. In terms of pricing, the Bankers Committee said it should not be more than five per cent for those who are going to have it.”

 

Aside this fund, Emefiele said the CBN would roll out new regulations before January 1 to banks on SME lending generally.

 

This, according to him, will encourage banks to lend to the SMEs at lower interest rates.

 

He said, “The reason why banks are showing apathy about bringing facilities to SMEs is risk-sharing issues. They do not want to carry the whole of the 100 per cent of the risk involved.”


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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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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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