E-Financial
Court Faults CBN on Discriminatory Bank Charges
A federal high court sitting in Awka, Anambra state has faulted the Central Bank of Nigeria (CBN) for imposing discriminatory bank charges on some categories of cash depositors from N500,000.00 and above in selected six states and the FCT.
Godwin Emefiele, CBN Gov
The CBN had through two Circulars tagged BPS/DIR/GEN/CIR/04/004 and PSM/DIR/CON/CWO/02/014, published on April 20, 2017 and September 17, 2019 respectively, imposed the charges.
The court’s position followed a Suit marked FHC/AWK/CS/91/2020 filed by Chijioke Ifediora, a lawyer, challenging the said CBN action in which he stated that the charge was ultra vires, illegal and unconstitutional.
The Plaintiff had urged the Court presided by Justice Nnamdi Dimgba to, considering the provisions of Sections 1 (3 ), 2 ( 1) and Section 42 of the Constitution of Nigeria, 1999 ( as amended), determine whether the said two CBN Circulars are not discriminatory, ultra vires, unconstitutional and illegal.
The plaintiff in his averment said he took the decision to sue the CBN when on January 7, 2020, he went to the Bank at Amawbia Awka, to make cash lodgement of N600,000 into his account, and was told that he would not be allowed to effect the deposit without paying the charge in accordance with the CBN Circular PSM/DIR/CON/CWO/02/014.
Ifediora consequently urged the court to grant three reliefs that the said two CBN Circulars are ultra vires, unconstitutional and illegal. That they are in conflict with Section 1(3), Section 2(1) and Section 42 of the 1999 Constitution of Nigeria and that the charges emanating from the implementation of the two CBN Circulars are illegal and unlawful.
The five Declaratory Orders the Plaintiff sought were for the CBN “to refund all citizens and corporate bodies operating in Anambra illegally or unlawfully charges by the implementation of the said Circulars,
“To refund of all citizens and corporate bodies operating in Anambra, Abia, Lagos, Ogun, Kano, Rivers and FCT who were also allegedly illegally or unlawfully charged by the implementation of the Circulars.
“To order a perpetual injunction restraining the Defendant/ CBN from publishing or issuing Circulars or implementing similar policies that are discriminatory or in conflict with Section 42 of the Constitution,
“To restrain all Financial Institutions and Deposit Money Banks from implementing similar discriminatory policies,
“And to direct the CBN to make a reversal publication of the implementation of the said Circulars in five ( 5) national newspapers indicating compliance with the decision of Court and refund of the unlawful charges”.
Chief Musa M.Tolani, counsel for the CBN, an Aba based legal practitioner, in his submission, argued that the Plaintiff lacked the locus standi to institute the Suit.
He described the plaintiff as a meddlesome interlopper, since he did not have the authority of all the citizens and corporate institutions residing in the states affected by the CBN circular, and failed to show how the policy affected him injuriously more than the rest of the residents of the states being sought to be protected.
The defence counsel added that the policy was introduced to facilitate the implementation of the CBN well intentioned and worthy cashless policy for the overall well-being of the Federation economy.
In his judgement, Justice Dimgba agreed with the Plaintiff that the policy was discriminatory before its general application across the Federation, hence the Suit is one challenging the lawfulness of the action of the CBN, which is a Federal Government agency.
He stressed that Section 252(1)(p) of the Constitution has vested the court with the jurisdiction to the exclusion of any other court to dispose of matters like that.
While he agreed with the Plaintiff that the CBN policy was discriminatory and offended section 42 of the 1999 constitution (as amended) in the first three reliefs sought by the Plaintiff, but refused to grant his five (5 ) consequential Orders sought from the Court.
Justice Dimgba explained that his refusal to grant the five consequential Orders was because it was admitted during oral hearings that the policy is now of nationwide application.
He made no order as to costs against the Defendant.
The World Bank has approved a $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus Programme.
According to information obtained from the bank’s website on Sunday, the approval, which took place on March 28, 2025, marks a significant step in addressing Nigeria’s economic challenges through expanded access to livelihood support, food security services, and grants for poor and vulnerable households and firms.
The project, officially titled the NIGERIA: Community Action (for) Resilience and Economic Stimulus Program, aims to provide essential support to households affected by economic downturns and to bolster community resilience.
It also seeks to improve food security and create economic opportunities for populations most affected by recent economic disruptions.
According to the World Bank, the program represents a significant step toward addressing systemic vulnerabilities in Nigeria’s economy.
By channeling resources directly to underserved communities, the project should alleviate the burden of rising living costs while fostering sustainable growth.
The $500 million loan is not the only financial commitment Nigeria anticipates this week as two additional funding packages are in the pipeline, awaiting final approval.
One of the loans is valued at $80 million and will focus on accelerating nutrition outcomes across the country.
The second, worth approximately $552 million, is designed to enhance access to quality basic education nationwide as both projects are scheduled for final clearance on March 31, 2025.
These loans are part of the World Bank’s broader strategy to support Nigeria’s development priorities, most especially in areas such as healthcare, education, and poverty alleviation, while the institution emphasized the importance of implementing these programs efficiently to ensure maximum impact.
While the loans aim to address urgent socio-economic needs, Nigeria’s rising debt profile has raised concerns among stakeholders. Under the President Bola Tinubu’s leadership, the country has received approvals for 11 World Bank projects totaling 7.45 billion in less than two years. However, data from the Debt Management Office (DMO) reveal that only 774.99 million (about 16% of the approved amount) had been disbursed as of July 31, 2024.
This slow pace of disbursement has sparked debates about the efficiency of project execution and fund utilization
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by Hawwau Gambo, acting head of Communication & Public Affairs, NDIC, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states:
“Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
E-Financial
NDIC Fixes April as Time Uninsured Depositors of Heritage Bank will Receive Liquidation Dividends
Depositors of Heritage Bank (in-liquidation) with balances exceeding the insured sum of ₦5 million will be paid from the sale of physical assets and debt recovery efforts soon, the Nigeria Deposit Insurance Corporation (NDIC) announced on Sunday.
With substantial progress recorded in asset realization, the first tranche of liquidation dividends will be paid to uninsured depositors in April 2025 on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which prioritizes claims.
The clarification follows concerns raised by depositors regarding the status of their uninsured funds.
A statement issued by the NDIC’s Acting Head of Communication & Public Affairs, Hawwau Gambo, reiterated the Corporation’s commitment to ensuring timely payments.
Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the NDIC was appointed as the liquidator in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1 & 2) of the NDIC Act 2023.
In line with its statutory mandate, the Corporation immediately commenced the bank’s liquidation process, including the verification and payment of insured deposits.
Providing an update on the ₦5 million maximum payout per depositor, the NDIC noted significant progress while acknowledging some challenges affecting certain depositors, including issues related to Bank Verification Numbers (BVN), Post No Debit (PND) restrictions, and Know Your Customer (KYC) limitations.
“Significant progress has been made in reimbursing insured deposits up to the ₦5 million limit per depositor.
“However, depositors yet to receive payments are largely those without Bank Verification Numbers (BVN) or alternate accounts in other banks, which are required to process payments through the Nigeria Inter-Bank Settlement System (NIBSS). Others have Post No Debit (PND) restrictions on their accounts.
“Additionally, some accounts have KYC limitations, such as Tier 1 accounts that restrict maximum lodgment of funds, while others have name mismatches requiring resolution.
“Some depositors who have already been paid may also be unaware due to a lack of mobile transaction alerts on their alternate accounts where the NDIC deposited their insured funds.
“Therefore, depositors are advised to check their alternate bank accounts, as some payments may have been processed without their immediate awareness,” the statement read.
Regarding payments to uninsured depositors, the Corporation explained:
“While depositors with balances above ₦5 million have received their insured sums, the remaining amounts will be paid as liquidation dividends, in accordance with the Corporation’s statutory mandate.
“The NDIC has made substantial progress in selling the bank’s physical assets and recovering debts to ensure that depositors with balances above the insured limit receive their payments as soon as possible.
As a demonstration of this commitment, the Corporation began realizing physical assets and investments while aggressively recovering outstanding risk assets, alongside verifying and paying insured sums.
“To ensure transparency and compliance with legal requirements, the NDIC has widely advertised the asset disposal process on its official website, social media platforms, major national newspapers, and through radio and television announcements.”
The NDIC emphasized that its simultaneous approach of paying insured depositors while aggressively pursuing asset sales and debt recovery is designed to accelerate the liquidation process and ensure that all depositors receive their funds without unnecessary delays.
“With the significant progress recorded in asset realization, the Corporation will declare the first tranche of liquidation dividends in April 2025, to be paid to uninsured depositors on a pro-rata basis, in line with Section 72 of the NDIC Act 2023, which governs the priority of claims.”
For clarity, the referenced section states: “Where an insured institution is unable to meet its obligations or suspends payment, or where its management and control have been taken over by the Central Bank of Nigeria following the revocation of its license, the assets of the insured institution shall be available to meet its deposit liabilities. Such deposit liabilities shall have priority over all other liabilities of the insured institution.”
Consequently, other claimants of the failed Heritage Bank, including creditors and shareholders, will only be considered for liquidation dividend payments after all depositors have been fully reimbursed, the NDIC added.
SERAP Asks National Assembly to Drop Bill to Jail Nigerians who Fail to Vote
Nigeria Gets Fresh $500m World Bank Loan for Economic Stimulus Programme
Uninsured Depositors of Heritage Bank to Receive Liquidation Dividends In April – NDIC
SystemSpecs’s Subsidiary Deelaa Becomes Whatadeal
MTN, Lynk Global Make Africa’s First Satellite-to-Mobile Call
Telecom2 days agoIHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
E-Financial2 days agoTitan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
General News2 days agoNCS to Launch Electronic System for Cash Declarations at Airports
News2 days agoSanwo-Olu Hails Jumia for Giant Strides in Growing Nigeria’s E-Commerce Sector
E-Financial2 days agoIMF Appoints Elumelu, Nigerian Businessman to Advisory Council
Telecom2 days agoMTN Champs Continental Relays: Over 1,000 Athletes Gear Up for Lagos Showcase
General News2 days agoAquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
Telecom10 hours agoSmart Treasure Investment Team’s Initiatives Eradicate Poverty, Says Aminu