E-Financial
Cash Crisis Exposes Nigeria Ruling APC Schism before Vote
All Progressive Congress (APC), Nigeria’s ruling party is divided over efforts to replace high-denomination banknotes, as many members who face elections in a week distance themselves from a policy backed by the president that’s disrupting life in Africa’s most populous country.
Peter, Bola Tinubu and Atiku Abunakar
MoneywebNow reported that at least 10 state governors from the APC have asked the Supreme Court to overturn the Central Bank of Nigeria’s (CBN) demonetisation policy, which is supported by President Muhammadu Buhari as he nears the end of his final term. It’s unclear if the judges will reach a decision before presidential and legislative elections on February 25.
The central bank announced its plan in October to replace old banknotes, including the 1 000-naira bill, worth $2.13 and the highest denomination available. A lack of new notes has led to a shortage of cash in an economy with a vast informal sector where only 60% of households have access to a bank account.
The controversy has pitted the incumbent against Bola Tinubu, the presidential candidate from Buhari’s party, who backs keeping old notes in circulation longer.
A Supreme Court injunction on February 8 blocked the central bank from enforcing its policy until it rules on the governors’ lawsuit. The case is adjourned until February 22.
Spearheading the campaign against the initiative is Tinubu’s ally in the APC, Kaduna State Governor Nasir El-Rufai.
In a televised broadcast Thursday, El-Rufai said central bank Governor Godwin Emefiele deceived the president by presenting the measures as a way to prevent politicians that had hoarded cash from buying votes. The central banker is causing “a nationwide shortage of cash so that citizens are incited to vote against APC candidates,” El-Rufai said.
The central bank argues the measures are necessary to mop up excess cash, rein in inflation and combat the scourge of kidnapping-for-ransom.
While the regulator extended a deadline to replace 200-, 500- and 1,000-naira notes from the end of January to February 10, long lines have become common outside bank branches and ATMs. The lack of cash has made daily activities such as riding the bus or buying food an ordeal, and protests against the measures have broken out around the country.
On edge
Concern about the electoral fallout is justified, according to Idayat Hassan, director of the Abuja-based Centre for Democracy and Development. “Everybody is on the edge in Nigeria,” Hassan said.
In an attempt to ease the shortages, Buhari ordered the release of old 200-naira notes back into circulation for two months, although critics within his party said that is inadequate.
El-Rufai said the president’s actions “amount to total disregard and disobedience” of the Supreme Court. Femi Gbajabiamila, speaker of the House of Representatives and another Tinubu ally, said Friday the government had displayed “a wanton disregard for the rule of law.”
The 10 APC governors filed a motion to the Supreme Court on February 17 asking the judges to overrule Buhari’s refusal to keep the higher value bills as legal tender and accusing the president of “executive lawlessness.”
Tinubu has backed the court’s interim decision and recommended the old and new notes should co-exist for one year. Despite the split, Buhari’s spokesman said in a statement Friday it “is not in doubt” that Tinubu is the president’s favored successor.
The rift comes as the APC faces uncertain prospects after winning the last two elections.
Polls show Atiku Abubakar of the main opposition Peoples Democratic Party and third-party candidate Peter Obi have a chance to beat Tinubu.
Banks in the country have begun suspending instant transaction alerts for cheques drawn from other banks until such cheques are fully cleared.
This is in compliance with a recent directive from the Central Bank of Nigeria (CBN).
This new policy affects customers who receive cheques from other banks, signaling a major change in how cheque payments are confirmed.
According to the CBN directive, the move is intended to prevent confusion around the status of cheque payments and to curb premature release of goods and services before the actual receipt of funds.
In an email sent to its customers, Access Bank stated that moving forward, alerts for cheques deposited into accounts will only be sent after the cheque has been completely processed.
This is to notify you of the recent directive by the CBN which requires banks to send transaction alerts on payments of other bank cheque only upon cheque clearance.
This means that you would only receive alerts for other banks’ cheques paid into your account after the cheque has been fully processed, that is, after the funds are paid into your account or if the cheque is unpaid and and returned from the other bank.
As a result of this new directive, you will no longer receive alerts for cheques lodged into your account until the cheque is cleared or returned”, the bank stated.
Access Bank also advised customers to monitor their accounts through other available channels such as the AccessMore app, internet banking platforms, PrimusPlus, and the USSD service *901# to stay updated on the status of their cheque deposits.
To track your transactions and ensure you do not part with your goods and services prior to payment. Please use our other channels; Accessmore, Internet banking, PrimusPlus, *901#.
We remain committed to delivering seamless and secure banking services to you always”, it said.
The CBN’s directive is designed to protect both payees and payers by ensuring that goods or services are not exchanged before the actual payment has been confirmed.
Previously, customers often received immediate alerts once a cheque was lodged, leading to confusion when the cheque was later dishonoured.
A banking industry insider commented, “This change is critical in promoting financial discipline. It safeguards businesses from losses due to bounced cheques and helps maintain the integrity of cheque payments.”
While digital payment methods are on the rise in Nigeria, cheques still remain a significant payment instrument in various sectors, particularly in wholesale trade and business-to-business transactions.
The apex bank’s new guideline is expected to strengthen trust in cheque transactions by ensuring that payment confirmations are accurate and timely.
As the financial ecosystem evolves, this move is one among several measures aimed at enhancing the safety and reliability of banking transactions across Nigeria.
Credit: Daily Sun
Sterling Financial Holdings Company Plc (“Sterling HoldCo”) has reported a remarkable 157% year-on-year growth in profit-after-tax, hitting ₦41.78 billion for the half-year ended June 30, 2025. This jump from ₦16.26 billion in H1 2024 reflects the Group’s strategic excellence and operational resilience.
Yemi Odubiyi
Profit after tax rose to ₦41.78 billion, while earnings per share climbed to 89 Kobo from 56 Kobo in the prior period. Gross earnings increased by 39.7%, reaching ₦212.61 billion. Interest income grew by 38.3% to ₦167.16 billion, and non-interest income surged 45% to ₦45.45 billion.
The Group’s cost-to-income ratio also improved significantly, declining from 75.7% to 64.5%, thanks to focused cost optimisation.
Sterling HoldCo’s total assets increased to ₦4.08 trillion as of June 2025, up 15.3% from ₦3.54 trillion in December 2024. Shareholders’ funds rose by 22.9% during the period, driven by strong retained earnings and successful recapitalisation. Asset quality also improved, with the non-performing loan ratio down to 5.1% from 5.4%.
Building on its financial strength, the Group completed a ₦100 billion private placement and rights issue, which enabled the recapitalisation of Alternative Bank and bolstered Sterling Bank’s capital base. A public offer to raise an additional ₦53 billion is set to launch in the coming weeks, forming the first phase of a US$400 million capital programme approved at the Group’s Annual General Meeting on June 30, 2025.
Group CEO Yemi Odubiyi attributed the half-year performance to strategic clarity and operational agility, noting that the results reflect resilience and value creation in a dynamic macroeconomic environment.
He reiterated the Group’s commitment to responsible growth, sustainable impact, and continued investment in Nigeria’s growth sectors, including renewable energy, healthcare, and community development.
Sterling HoldCo remains focused on leveraging its robust capital strategy to fuel long-term expansion, innovate across its financial services, and deepen its contribution to Nigeria’s economic progress.
Fidelity Bank Chapter of the Institute of Chartered Accountants of Nigeria (ICAN) has inaugurated Mr. Audifax Onuoha as its new Chairman, ushering in a fresh era of professional development and strategic collaboration within the bank.
L-R: Chairman of the Occasion and Regional Bank Head -Ikeja, Fidelity Bank Plc, Jude Monye, FCA; Associate Prof. & Member, Governing Council, Institute of Chartered Accountants of Nigeria (ICAN), Dr. Mrs Obal Usang Edet Usang, FCA; 4th Chairman, ICAN Fidelity Bank Chapter, Audifax Onuoha, FCA; 61st ICAN President, Mallam Haruna Yahaya MNI, PhD, FCA; and Immediate Past Chairman, ICAN Fidelity Bank Chapter and Chief Financial Officer, Fidelity Bank Plc, Victor Abejegah; during the 4th Investiture and Patron Conferment Ceremony of the ICAN Fidelity Bank Chapter, held at the Fidelity Bank Head Office in Lagos recently.
The investiture, which took place at Fidelity Place, Lagos, also featured the swearing-in of the Chapter’s 2025–2027 Executive Committee and the conferment of a Patron award on Mr. Stanley Amuchie, Executive Director/Chief Operations and Information Officer of Fidelity Bank Plc.
Onuoha, who currently serves as Group Head, Compliance Risk Management at Fidelity Bank, succeeds Mr. Victor Abejegah, the bank’s Chief Financial Officer. In his acceptance speech, Onuoha pledged to prioritise capacity building and continuous learning for ICAN members and non-members across the bank.
He said the new administration would focus on equipping professionals with the skills required to navigate the evolving financial services landscape, while strengthening the strategic alliance between ICAN and Fidelity Bank.
“We will deepen the synergy between Fidelity Bank and ICAN as a foundation for a resilient financial ecosystem,” he said.
Delivering the opening address, Mr. Jude Monye, Regional Bank Head – Ikeja, Fidelity Bank Plc, urged the new leadership to make professional development a top priority, describing capacity building as imperative in today’s financial environment.
Monye commended the Chapter’s growth and attributed its success to the support of Fidelity Bank’s leadership, particularly its Managing Director/CEO, Dr. Nneka Onyeali-Ikpe.
In his remarks, Abejegah highlighted achievements during his tenure, including entrepreneurship training in fish farming, snail farming, poultry, and export processing, as well as improved member welfare and insurance support for bereaved families.
The event also saw the conferment of the Chapter’s Patron award on Amuchie, in recognition of his over 25 years of exemplary service in banking. He described the honour as a call to serve as a mentor and advocate within the ICAN community and Fidelity Bank family.
The ceremony concluded with the swearing-in of the new executive committee by ICAN’s 61st President, Mallam Haruna Yahaya.
Fidelity Bank Plc is a full-fledged commercial bank serving over 9.1 million customers through digital channels, 255 business offices across Nigeria, and its UK subsidiary, FidBank UK Limited. The bank has received multiple awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award and the Euromoney Award for Best Bank for SMEs in Nigeria.
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