Electron Native

 The Central Bank of Nigeria (CBN) has issued a clarification regarding discussions circulating in various forums that the old series of N200, N500, and N1,000 banknotes will cease to be legal tender on December 31, 2024. The CBN categorically states that such claims are false and appear to be aimed at disrupting the country’s payment system. In a statement, signed by Sidi Ali, Hakama acting Director, Corporate Communications Central Bank of Nigeria, the regulator emphasized that the order from the Supreme Court of Nigeria, issued on November 29, 2023, grants the Attorney-General of the Federation and Minister of Justice the authority to extend the use of old Naira banknotes indefinitely. As a result, the CBN’s directive remains in effect, instructing all its branches to continue issuing and accepting both old and redesigned Naira banknotes for transactions with deposit money banks (DMBs). The Supreme Court has mandated that the old N200, N500, and N1,000 notes will conti...

Foreign investors in Nigeria have being assured that their investments are safe. The Governor gave this assurance, Central Bank of Nigeria, Godwin Emefiele. Central Bank of Nigeria Source : Wikipedia According to the punch The assurance is part of a statement from the CBN on Sunday. Emefiele assured investors interested in repatriating their funds from the country of the safety of their money, despite the drop in the revenue from crude oil. He noted that the CBN had put in place measures to ensure an orderly transfer of funds for those that might be interested in doing so. He said, “The foreign exchange available would be devoted to strategic importation or service obligations that are the priority. “The CBN, in collaboration with the Federal Ministry of Industry, Trade and Investment, is committed to galvanising the manufacturing sector in a bid to reset the economy.” Recalling a similar situation that occurred in 2015 over declining revenue, Emefiele said that the...

The Central Bank of Nigeria (CBN) has new guidelines for electronic payments and collections for public and private sectors in the country. The regulation is a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014). The CBN, in the regulation, introduced a penalty of two million for Deposit Money Banks (DMBs) on third party e-payment solution not approved by it on every repeated occurrence. It also introduced penalty of One million naira for Other Financial Institutions (OFIs) on third party e-payment solution not endorsed by the apex bank. The apex bank states on its website that the regulation is intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in Nigeria. Governor-Central-Bank-of-Nigeria-CBN-Godwin-Emefiele-right-Deputy-Governor-Financial-System-Stability-Mrs.-Aishah-Ahmad-and-her-Operations-counterpart...

More funds for Nigeria as the nations last treasury bills auction was sought for. This has been confirmed by the  Central Bank of Nigeria (CBN) announcing an over subscription of 112.15 billion naira.  The CBN offered a total of 34.38billion naira worth of T-bills across the 91-day, 182-day and 364-day tenors. The 91-day tenor saw an oversubscription of 10.68 billion naira as it received a total subscription of 15.06 billion naira, compared to the 4.38 billion naira offered. The 182-day tenor saw an under-subscription of N1.41bn as a total subscription of 8.59 billion naira was received, compared to the 10 billion naira offered. The 364-day tenor witnessed the highest interests as it was oversubscribed by 102.88 billion naira. Nigerian dealers raised their secondary-market bids for one-year treasury bills to 14 per cent from 11 per cent last week. The bid offer spread on the paper doubled to 200 basis points as some ...

Nigerian bond yields fell slightly on Wednesday, a day after the central bank unexpectedly announced an interest rate cut aimed at stimulating growth in Africa’s biggest economy, traders said. Central Bank of Nigeria According to Reuters, Nigeria’s central bank cut its benchmark interest rate by 50 basis points to 13.5 percent on Tuesday, its first reduction in four years. The rate has been held at 14 percent since July 2016 to support the naira and curb inflation. Bond yields dropped to around 13 percent across maturities on Wednesday on minor buying interest, traders said. They later recovered to 14.15 percent. The most liquid one-year treasury yield fell 15 basis points to 12.75 percent. “The markets opened lower but no one is buying as investors adjust their bids,” one trader said. ADVERTISEMENT Traders said low liquidity on the interbank market hampered deals, adding yields have already fallen from as high as 15 percent last month after the central bank l...

 The Nigeria Deposit Insurance Corporation (NDIC) has denied allegation of conducting a hasty liquidation process of the Fortis Micro-Finance Bank (MFB). This claim is part of a report in Daily Trust Newspaper on February 8 2019. The corporation countered the news print in a statement signed by Mohammed Ibrahim, its Head of Communications and Public Affairs Department. It added that the corporation has always been 'faithful and alive' to its responsibilities in protecting Nigerian Depositors at all times.The statement went further that, “the report relied on statements credited to one  Garba Kurfi, Managing Director of APT Securities and Fund to the effect that the CBN and NDIC should have managed the affairs of Fortis MFB rather than embark on its outright liquidation. “He added that managing affairs of the bank, its resale or the appointment of a new management would have been better for its depositors and other banks that had business relationship with Fortis a...

Recovery of Nigeria's economy has been peg at a total shift to none-oil sectors but the financial institutions have not joined this specific business module. A recent report shows that the total loans granted by Nigerian banks to the private sector declined by N600.60bn, from N16 trillion in the first quarter of 2017 to N15.34 trillion, in the second quarter of 2018. According to a report by the National Bureau of Statistics (NBS) on Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018), recently released, revealed that credit to the private sector declined for six consecutive quarters. A breakdown of the total N63.27 trillion credit provided in 2017 by banks to finance activities of the private sector shows that N16 trillion was provided in the first quarter. The second, third and fourth quarters had N15.7 trillion, N15.83 trillion and N15.74 trillion, respectively. According to the report, banks lent N15.6 tril...

The International Monetary Fund (IMF) on Wednesday has welcomed Nigeria’s exit from economic recession and praises its strong recovery as its foreign exchange reserves improves. IMF said this in a report released on Wednesday in Washington DC by its Executive Board after the conclusion of Article IV Consultation with Nigeria. According to the report, the Executive Directors of IMF welcomed Nigeria’s exit from recession and the strong recovery in foreign exchange reserves, helped by rising oil prices and new foreign exchange measures. They commended the progress in implementing the Economic Recovery and Growth Plan, including the convergence in foreign exchange windows, tight monetary policy and improvements in tax administration. IMF, however, said that though, the Nigerian economy has exited recession, it still remained fragile and susceptible to shocks. “The directors noted, however, that important challenges remain as growth in the non-oil, non-agricultural sector ha...