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Citibank Grants N500m Loans to Accion MFB

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Citibank has granted N500m loan to Accion Microfinance Bank as part of efforts to promote the development of the microfinance sector in Nigeria.

Lola Oyeka, bank’s Country Public Affairs Officer for Nigeria and Ghana, made the announcement in a statement she issued in Lagos.

According to her, the grant will fund Accion’s loan portfolio and support the development of approximately 5,000 micro and small enterprises in the country.

She also said the loan agreement would support the Central Bank of Nigeria’s National Financial Inclusion Strategy.

According to her, it will also reduce the number of excluded population by bringing them into the formal banking fold.

She further stated that the loan was part of a long-term business partnership between the Citi Inclusive Finance, Citi’s specialised unit for microfinance and inclusive finance transactions.

The bank’s Country Public Affairs Officer also named the Overseas Private Investment Corporation and the U.S. government’s development finance institution as part of the partnership.

The partnership intends to provide financing in local currencies to leading microfinance institutions operating in frontier and emerging markets around the world, according to her.

The bank cited a survey by the Enhancing Financing Innovation and Access, stating that as at 2012, about 39.7 percent or 34.9 million adult Nigerians were excluded from financial services.

CBN’s NFIS focuses on working with financial institutions to increase access to the unbanked population to banking products under affordable terms and conditions.

This is with the overall objective to empower people, promote savings culture, increase productivity and reduce poverty.

Akin Dawodu, Citibank, Nigeria CEO, reinstated the bank’s commitment to working with Microfinance partners in support of the national financial inclusion strategy.

“This, we intend to do by availing credit to micro and small enterprises in Nigeria.

“We are delighted to partner with microfinance enablers such as OPIC and Accion MFB for the benefit of SMEs and micro-entrepreneurs, thereby contributing to the economic development of the country,’’ Dawodu said.

Mrs Bunmi Lawson, MD/CEO Accion MFB, said funding from Citibank would enable the MFB to expand its financial services to a larger number of micro-entrepreneurs across the country.

“This will lead to economic empowerment and job creation for more Nigerians.

“We hope that other financial institutions will emulate Citibank by providing loans to the Microfinance banks which will, in turn, ensure that we truly meet the credit needs of the average Nigerian entrepreneur.

“Accion MfB core values, business philosophy and methodology have continued to distinguish it as the leading Microfinance Bank in Nigeria,’’ Lawson said.

Accion Microfinance Bank is listed on the London Stock Exchange as one of the companies to inspire Africa in 2017.

It has won the Lagos State Enterprise award for Best Microfinance Bank in Lagos State multiple times.


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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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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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