E-Financial
CBN to Rejig Payment System Vision Strategy
Central Bank of Nigeria (CBN) has unfolded plans to review backward its 10-year Payment Systems Vision (PSV-2030) strategy, which will now span a five-year strategy and rechristened as PSV-2025.
Mr. Godwin Emefiele, CBN governor
The CBN said the move was in response to evolving development of blockchain technology and other payment systems disruptions.
The CBN had announced that it had started the implementation process of the PSV 2030 to replace the PSV 2020, which aims to significantly reduce financial exclusion, promote electronic banking as well as other alternative banking channels.
Mr. Musa Jimoh, CBN director, Payment Systems Management Department, spoke on the review of the strategy at First Bank’s FinTech Summit 4.0, where stakeholders gathered to discuss ‘How Blockchain and Artificial Intelligence will Disrupt FinTech in Nigeria.’
He added that the central bank was working on breaking down the licences for operators in the financial technology sector to allow small players in the industry access markets as it works on harmonising data in the financial sector as well as other initiatives that would deepen the payment systems framework in Nigeria.
Speaking on the payment system vision of CBN, Jimoh said: “Because of the ability of changes in technology is so high, we cannot wait 10 years to begin to review our strategies again.
“So, what we are proposing is to have a five-year strategy, which would then be called PSV-2025. And once we get approval for this, we would be looking at initiatives for the next five years.”
On how to expand the payment systems, he said: “Some of the initiatives we have put on the table, and some of the things we are trying to implement to deepen acceptance of payment systems and open the market for innovators and small businesses to enter the terrain.
“First is the regulatory sandbox, which is already in the public which we shared a draft framework for people to comment and then get back to us. We have gotten a lot of feedback and I am happy enough to announce that we are working together with the financial conduct authority in the United Kingdom in developing this regulatory sandbox and eventually we would customise it to our environment to ensure that it fits into our own ecosystem.
“Second is the open banking regime, which we have started working on in order to allow the entire ecosystem to work symbiotically. We want a situation where there would be no exclusivity on account data being held by banks again.
“Banks should be able to open up their accounts database and let fintech companies and other small companies add value-added services on account information they hold.”
He said the plans would also enable the market to be more resilient and responsible.
“There are other initiatives that are coming up but we need to focus on these ones because we know they would basically drive the ecosystem into the future.
“Also, on artificial intelligence and big data, what the CBN is trying to do is to see how we can harmonise this data and provide a database where people can slice dice and trend what the future of payment holds in terms of the activities that have happened within the payment infrastructure,” he added.
Commenting on small companies being able to participate, he stated: “We like to create an environment where small companies that don’t have the financial muscle to take licence from CBN can also participate.
“What we have done now is to tier our licences basically to collapse our licences into four categories, so we would be coming with a new licensing model that would enable the small companies to come into the forum without going through those stringent conditions that the regulars would impose on big companies.
“These are the things we are looking to implement in the next five years.”
The exchange rate stabilised in the FX market as the Central Bank of Nigeria (CBN), defended the local currency with $360 million, stemming a negative tide from increased demand for the US dollar.
Olayemi Cardoso, Governor, Central Bank of Nigeria
According to Market Forces Africa, for most part of the week, the naira experienced heightened volatility due to an FX liquidity shortage in the official window, brought forward from the previous week.
This caused the exchange rate to wobble against the US dollar, but late picked up as inflows into the market improved.
On Friday, the naira rebounded against the dominant foreign currency, the US dollar, in last-minute transactions supported by a relatively higher liquidity supply by the monetary authority.
The exchange rate appreciated by about 2% to settle at N1,517.93 in the official market on Friday after persistent negative volatile.
Spot FX data from the regulator showed that the naira gained N29.89 on the day following FX sales to banks.
The market liquidity was also supported by additional inflows from foreign sources and reduced demand for foreign payments.
FX interventions and inflows from offshore clients and local corporations boosted volume of US dollar in the official window, AIICO Capital Limited dropped the hint in an investors note.
In the market, demand pressure persisted, leading to fluctuations in the US dollar to naira exchange rate for most of the week.
The CBN sold $188.10 million to banks, the last auction offered at the range of N1,532.00 to N1,540.00, bringing the total FX sales for the week to $360.00 million, according to investment banking firm TrustBanc Financial Group Limited.
Despite these interventions, demand outpaced supply, causing the naira to depreciate. By the end of the week, the market recorded improved liquidity, with trades ranging between N1,480 and N1,548.
Data from the CBN revealed that Nigeria’s external reserves increased by USD12.06 million to USD38.36 billion after 9 consecutive weeks of decline. In the forwards market, the naira rates decreased by 0.6% for a one-month contract to N1, 577.80.
The Securities and Exchange Commission (SEC) has cancelled the registration of Mainland Trust Limited, and suspended Centurion Registrars, following their failure to comply with regulatory directives.
The commission made the disclosure through circulars which were released at the weekend. The circular on Mainland Trust Limited read: “The Securities and Exchange Commission hereby notifies the general public that the registration of Mainland Trust Limited as a capital market operator has been cancelled with immediate effect.
“This cancellation order is made pursuant to the powers of the Commission under Section 38(4) of the Investments and Securities Act, 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
“The Commission’s decision is informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.
“All clients of Mainland Trust Limited are by this notice advised to contact the Central Securities Clearing Systems Plc (CSCS) for appropriate guidance on the transfer of their stocks to another stockbroker of their choice.”
SEC directed that the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc and all capital market trade associations to discontinue capital market-related dealings with the company.
In the same vein, the SEC announced the suspension of Centurion Registrars Limited, its directors and sponsored individuals from capital market activities with immediate effect.
The SEC said the suspension order was made pursuant to the powers of the Commission under Section 38(4) & (5) of the Investments and Securities Act, 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.
It explained that its decision was informed by the company’s failure to comply with regulatory directives and non-resolution of several complaints against it.
“All clients of Centurion Registrars Limited are advised to contact Africa Prudential Plc for appropriate guidance on the transfer of their portfolios to another Registrar of their choice.
“In addition, the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) Plc and all Capital Market Trade Association are directed to discontinue capital market related dealings with the company and its principal officers,” the circular stated.
The commission also disclosed that in furtherance of the commission’s unwavering commitment to the maintenance of zero tolerance for infractions in the Nigerian capital market and in line with its revised enforcement strategies, stakeholders and the general public are hereby informed that henceforth, the names of capital market operators (CMOs) found to have violated market laws/regulations would be published in the commission’s “name and shame” journal.
“The publication would be in addition to the sanctions/penalties for the respective infractions prescribed in the ISA 2007 and the SEC Rules and Regulations.
“This enforcement strategy underscores the Commission’s dedication to safeguarding the integrity and stability of the Nigerian capital market, protecting investors, and ensuring strict adherence to established rules and regulations.
“Stakeholders and CMOs are advised to be guided accordingly” the commission added.
FirstBank has formally denied allegations of fraud in an ongoing court case filed by customer Dr. Agbai Eke, describing the claims as “entirely unfounded and false.”
According to a statement from the bank, their internal investigation points to “unprofessional and unethical dealings” between Dr. Eke and a former bank employee.
FirstBank claims these individuals used a personal relationship to conduct unauthorised transactions without the bank’s knowledge or involvement.
The bank said it has reported the matter to law enforcement authorities for further investigation.
Officials noted that suspects have already provided statements to investigators.
FirstBank also declined to provide additional details, citing the ongoing court proceedings.
“We will refrain from further comments to allow the Court to dispassionately determine the issues before it,” the bank stated.
The case gained public attention following reports by Thisday Newspaper and Arise Television, as well as through a circulating video regarding the legal dispute.
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