E-Financial
CBN Gets Platform to Reduce Forex Demand
Central Bank of Nigeria (CBN) has unveiled a new remittance platform that would help reduce the demand for foreign currencies in the country.
The platform, known as the Outbound Remittance Service is being spearheaded by First Bank of Nigeria Plc in collaboration with Western Union Company.
The initiative is targeted at remittances by individual to dependants, children and wards abroad and for other person-to-person needs.
Transactions to be covered under this new initiative include maintenance allowance for children abroad, personal home remittances within allowable limit,cash gifts within allowable limit and other person to person remittances
Speaking at the event which was held in Abuja, Godwin Emefiele, governor of CBN said the unveiling is in line with the central bank’s strategic policy to reform the payment system landscape.
He said since the commencement of the former inward money transfer services in 1995 which was pioneered by Western Union, the payment landscape in Nigeria has been significantly transformed.
For instance, he said over the years, payment to inbound transfers to beneficiaries have been made in foreign currencies, noting however that in an effort to reduce the amount of foreign exchange imported into the country, the CBN in September 2013 directed that beneficiaries from inward transfers be made in Naira.
He said, “Today, outbound money transfer services is being launched to provide an alternative channel for foreign exchange transfer to serve the need of small foreign exchange end-users and simultaneously reduce the amount of foreign exchange sought from official foreign exchange windows in Nigeria and to a large extent to conserve our foreign exchange.
“The outbound service which is the first of its kind in Nigeria will provide Nigerians of the opportunity to transfer funds to their relatives and dependants abroad.
“Under this initiative, a prospective customer who wishes to use the service will only pay Naira equivalent to the money transfer service operator for foreign currency to be paid to the beneficiary abroad.”
The governor said that henceforth, people do not need to go to a Bureau De Change or a bank to buy foreign currency to make transfers to dependants abroad, adding that “If you have need to send money abroad, all you need do is to take your cash (naira) to the western union agents in Nigeria.”
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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