E-Financial
CBN Seeks Banks’ Support to Tackle Payment System Impediments
The Central Bank of Nigeria (CBN) yesterday called for support from the banking sector to strengthen consumer confidence in the country’s payment system.
Godwin Emefiele, governor of the apex bank, stated this in Abuja while delivering a keynote address at the eight annual banking and finance conference.
The conference with theme, ‘Positioning Nigeria’s payments systems for global competitiveness’, was organized by the Chartered Institute of Bankers of Nigeria (CIBN).
Emefiele said that while the apex bank had come a long way in repositioning the country’s payment system, there was need to ensure the security and reliability of the payment system.
He listed some of the challenges currently facing the system as weak risk management frameworks, security issues, resistance of target customers to patronize new products and lack of unique identifier for customers across institutions.
Others are high operating costs, interconnectivity of networks, low level of card usage on point of sale and non-transparent pricing.
Represented by Dr. Sarah Alade, CBN deputy governor, Economic Policy, he said through some of the bank’s initiative, there had been a drop in card related fraud by 98 per cent.
He said, “While many of the CBN’s efforts have gone into the transformation of the payment system in line with global trends, we should not lose sight of the associated risks and challenges which I hoped would be adequately addressed at this conference.
“By this, we will be able to strengthen consumer confidence in the safety, security, reliability of our payment systems, bearing in mind that when this trust is undermined, then public confidence in the financial services industry is eroded and the entire economy loses.”
President Goodluck Jonathan while declaring the conference open said as a self-regulatory organization, the CIBN remains a major stakeholder in the transformation initiative of the federal government.
The president who was represented at the event by Jonah Otunla, accountant general of the Federation, said as professional bankers, who have a very important role to play in the transformation and development of the country, high level of professional conduct and ethics must be displayed at all times.
He said, “Banking practice demand enormous responsibilities for the trust and confidence which the society places on the practitioners because of their leadership roles as providers of the most crucial resource for commerce and industry in the facilitation of economic growth and development.
“You must be aware that banks and other financial institutions constitute a formidable group of stakeholders in a modern economy, for which society demands a high level of professional conduct and ethics.”
Also speaking, Mrs. Omobola Johnson, minister for Communications Technology urged banks to put in place cost effective infrastructure for effective payment system in the country.
She said, “I will like to enjoin the CIBN and the banking industry to ensure that they roll out a robust and cost effective infrastructure that covers the entire country,’’
“You must come up with a win win solution that enables the banking industry , the telecoms industry to work side by side to grow a successful mobile payment industry that will be envy of other nations.”
In her address of welcome, Mrs Debola Osibogun, CIBN president, said the conference was convened to strengthen the knowledge of participants particularly on issues affecting the banking sector.
She said the institute had developed its relevance over the years as an active partner in the development of the services industry and the economy.
Federal High Court in Lagos has fixed July 1, 2025, for the commencement of trial in a money laundering case involving Cititrust Holdings PLC and three of its subsidiaries.
The subsidiaries are Cititrust Funding PLC, Cititrust Credit Limited and Cititrust Financial Services Limited,
The companies are facing an eight-count charge filed by a team of prosecutors from the Economic and Financial Crimes Commission (EFCC), comprising Anasoh Henry Onyekachi, Frankklin Ofoma, Abdulhamid Lamido Tukur, and A.A. Usman.
According to the charge, between 2021 and 2023, the companies, all incorporated in Nigeria, allegedly operated investment management services without a valid licence from the Central Bank of Nigeria (CBN).
This act contravenes Section 57 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and is punishable under Section 57(5) of the same legislation.
The prosecution also alleged that the companies conducted a Collective Investment Scheme without registering with the Securities and Exchange Commission (SEC), another violation of regulatory requirements.
In one of the counts, Cititrust Credit Limited is specifically accused of failing to report high-value financial transactions to the Nigerian Financial Intelligence Unit (NFIU).
These transactions include a N20 million transfer on January 7, 2021; a N200 million transfer on April 4, 2021; and a N200 million lodgement on January 29, 2021.
Additionally, both Cititrust Credit Limited and Cititrust Financial Services Limited are alleged to have made a single transfer and lodgement respectively of N42 million into their bank accounts on January 29, 2021, without proper disclosure to relevant authorities.
The alleged offences are in breach of Sections 11(1)(b) and 11(3) of the Money Laundering (Prohibition) Act 2022, as well as Section 54(1) of the Investment and Securities Act 2007, and are punishable under the respective laws.
The court is expected to begin full proceedings on July 1.
Ecobank Nigeria’s long-term issuer credit rating has been downgraded to ‘CCC-’ from CCC, with the outlook placed at negative by S&P Global Ratings. This is a resultant effect of the $150 million bond buyback offer on the bank’s $300 million Senior Unsecured Eurobond.
Part of the tender offer made by Ecobank includes an early tender premium of $12.50 for every $1,000 in principal (equivalent to 1.25%), with the anticipated settlement date set for July 8, 2025. The offer also requests bondholders’ consent to eliminate the capital adequacy covenant on the outstanding notes.
These actions also led S&P to downgrade the $300 million Eurobond from ‘CCC’ to ‘CCC-’. Although S&P notes that it does not consider the tender offer a distressed debt restructuring.
However, this assessment is at risk of changing if the bank does not receive the promised capital injection from the parent group, Ecobank Transnational Incorporated (ETI).
Following the naira devaluation, Ecobank was unable to meet the regulatory Capital Adequacy Ratio (CAR) requirement, as its CAR dropped to 7 per cent. This was below the 10 percent regulatory minimum. The breach of the CAR caused the bank to seek the consent of its bondholders to pause the capital adequacy notes on the Eurobond notes till September 2025.
Following this development, the bank received a $50 million prepayment on promissory notes from its parent company, ETI, along with early repayments on certain foreign currency loans. However, it has been insufficient in restoring the capital adequacy to regulatory levels.
According to S&P, the bank is expected to receive another $50 million capital injection from its parent group before August 2025. However, the ratings agency notes that if the bank is unable to receive this capital injection, it will inevitably default on its bonds. A situation that would cause a further downgrade to ‘CC’.
It was recommended that Ecobank Nigeria consider raising $150 million through additional Tier-1 instruments to strengthen its liquidity buffers. Additionally, the bank was advised to intensify efforts to recover its foreign currency-denominated loans.
Sofri, Powered by Links Microfinance Bank plans a massive rollout of Point of Sale, PoS terminals for merchants and agency banking in the third quarter of this year.
This is coming against the backdrop of the banks revamp of its digital platforms to support better customer experience.
Paul Adebayo, managing director, Sofri, said the bank is technology and purpose-driven, with focus on financial inclusion and sustainability. As well with the determination of making banking simpler, inclusive, and impactful.
He said that the revamped mobile app features, faster onboarding, cleaner interface, real-time alerts, enhanced security and seamless loan applications.
“Our corporate internet banking Launched for SMEs and institutional clients features, secure payments, transfers, account management and enhances business banking experience.
“Laying the groundwork for greater reliability, product innovation and operational efficiency is our new core banking infrastructure. This change enables us to scale faster and serve customers better.
“Our Terminal Management System (TMS) improves the performance, uptime, and remote monitoring of our POS terminals. This ensures merchants and field agents enjoy better stability, quicker settlements, and stronger support,” he added.
On sustainability impact, Adebayo, added that Sofri is embedding ESG principles into its lending and operational models — from offering green financing options, to supporting waste-to-wealth entrepreneurs, and making inclusive finance part of Nigeria’s circular economy.
Sofri is a trademark of Links Microfinance Limited (Links Mfb). Links Mfb is licensed and regulated by Central Bank of Nigeria (CBN) and deposits insured by the Nigeria Deposit Insurance Corporation (NDIC). Links Mfb is a member of DLM Capital Group, owners of DLM Asset Management as regulated by the Securities and Exchange Commission (SEC).
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