E-Financial
FG Approves $1.3Bn Take-off Grant for Development Bank of Nigeria
The Federal Executive Council has approved a 1.3 billion dollars loan credit facility for the commencement of the Development Bank of Nigeria. The approval came on the heels of a memo submitted by the Finance Minister, Kemi Adeosun seeking council’s ratification on the loan’s request.
Adeosun, who briefed State House correspondents on the outcome of FEC meeting which was presided over by President Muhammadu Buhari, said 500 million dollars of the amount would come from the World Bank.
According to the minister, another 450 million dollars is expected from the African Development Bank, and 200 million dollars from KFW, a financial corporation.
Adeosun said another 130 million dollars would come from the French Development Agency to make up the 1.3 billion dollars earmarked for the commencement of the bank.
“As you know, the Development Bank of Nigeria recently received its licence and is being funded by some long term loans from some of our development partners.
“So the World Bank had given us 500 million dollars repayable over 21 years and all of this is at a concessional rate.
“The African Development Bank is giving us 450 million dollars and KFW are giving us 200 million dollars and the French Development Agency are giving us 130 million dollars.
“To access this money, we are ready to disburse but there are two requirements that we need to make and one of them is the legal opinion by the Attorney-General of the Federation and the other is the National Assembly approval. “
Before it goes to the National Assembly, it needs to be approved by FEC and the FEC simply approved today that these loan requests should go to the National Assembly for approval.
“So we can access this money and the Development Bank of Nigeria can take off fully as it is expected to transform Financing of our MSMEs sector.
“The council enthusiastically approved these facilities which are on long term, meaning that the DBN will be able to lend to our MSMEs over much longer periods and at much lower rates. “
So the impact on the SMEs will be quite considerable.’
According to her, the loans are also concessionary with interest rates of less than two per cent and have very long repayment period of up to 21 years.
The loans are aimed at allowing the bank to lend to Small and Medium Enterprises (SMEs) for a longer period with interest rate lower than in commercial banks.
Adeosun also said that the council approved N550 million contracts to hire project managers and verification consultants for the integration of the military’s payroll into the Integrated Payroll and Personnel Information System (IPPIS).
She said that 200,000 military personnel would be integrated into IPPIS.
E-Financial
Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme
“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.
E-Financial
CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering
Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.
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.
E-Financial
CBN Urges Banks to Expedite Action on Recapitalisation
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.
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.”
- News2 days ago
NGX RegCo, FRCN Unveil Roadmap for SFRS Adoption
- News2 days ago
NCC Files Copyright Violation Charges Against MTN, Others
- News3 days ago
Detained Binance Executive Reportedly Escapes from Custody, Flees Nigeria
- News2 days ago
FIRS Files Tax Evasion Charges against Binance
- E-Financial3 days ago
NDIC Reports 10 High-Profile Banking Infractions to EFCC
- News1 day ago
IFC Invests in New 4DX Ventures Fund to Support Tech Startups in Africa
- E-Financial2 days ago
Access Bank Introduces Innovative Offline Banking Platform
- Telecom2 days ago
NCC Reports Sluggish Growth in 5G Penetration, 3 Years after Adoption