South Africa has been added to the Financial Action Task Force’s (FATF) “grey list” of countries under scrutiny for their standards in preventing money laundering and terrorism financing. This could lead to increased monitoring and enhanced due diligence checks for South African clients at international financial institutions, as well as complications in accessing funding from multilateral development institutions and official lenders. South Africa’s central bank and National Treasury have noted the decision and committed to addressing the concerns raised by the FATF. Nigeria was also added to the grey list on the same day.
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Nigeria: New rules for banking execs and directors
The Central Bank of Nigeria has revised regulatory requirements for executive management and non-executive directors of Deposit Money Banks and Financial Holding Companies, stating a maximum tenure of 10 years for executive directors, deputy managing directors and managing directors, and a maximum period of 13 years for non-executive directors, broken into three terms of four years each. The tenure limit for all positions across the banking industry is 20 years.
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Nigeria: Regional expansion plans create risk for local banks
Fitch Ratings has warned that Nigerian banks’ expansion plans in other African countries pose near-term credit risks due to weaker operating environments and regulatory challenges. The rating agency has also noted that some Nigerian banks have struggled with profitability and asset quality in their overseas subsidiaries. However, Fitch expects these risks to be manageable given the banks’ limited international exposure and a gradual approach to expansion.
Categories: BanksTags: Nigeria -
Moody’s: Outlook for African banking sector is stable
Moody’s Investors Service predicts that African banking systems will remain deposit-funded and liquid, which will support financial stability in most countries. However, foreign currency liquidity will still pose a challenge for Nigerian and Egyptian banks. The banking sector outlooks for Nigeria, Egypt, Kenya, and The West African Economic and Monetary Union remained stable, while those for South Africa and Morocco were revised from negative to stable, thanks to their steady deposit-based funding structure, capital, and profitability despite a challenging operating environment.
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Nigeria: CBN in talks with US tech firms to boost CBDC uptake
The Central Bank of Nigeria is in talks with new technology partners to develop a new and improved system to manage its central bank digital currency (CBDC), the eNaira. It is believed that the Nigerian financial authority has discussed these plans with the New York-based technology firm R3. The effort to create the eNaira began in 2021 with the help of financial software company Bitt, which still works closely with the CBN and is “currently developing additional features and enhancements”. However, only 0.5% of Nigerians use the CBDC.
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Nigeria: Stellas Digital Bank marks one year of growth
Stellas Digital Bank, a Nigerian fintech player, is celebrating its first anniversary with a pledge to continue deploying technology to enhance the financial experience of its users. Since its launch in 2022, Stellas has become one of Nigeria’s top digital banks with over a million users across the country, with features such as “ghost mode” and “Stellas vault” catering to specific needs of its users. The bank’s success demonstrates the growing demand for innovative digital banking solutions in Nigeria.
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Nigeria: Neeraj Singhal joining Sterling Bank board
The State Bank of India (SBI), India’s largest bank, has appointed Neeraj Singhal to the board of Nigeria’s Sterling Bank. Singhal, who is currently the General Manager in charge of operations at SBI’s international banking group, will bring his financial tech expertise to the Nigerian bank. SBI is the second largest shareholder in Sterling Bank, and the appointment comes as Nigeria shifts from legacy banking to digitalization.
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Nigeria: FCMB asset finance facility expands lending to SMEs
So far, over 25,800 Nigerian SMEs have accessed a new asset finance facility managed by First City Monument Bank. FCMB has awarded a total of N42.4 billion in loan guarantees to SMEs that lack sufficient collateral coverage. The bank has also issued over N637.08 billion in loans to entrepreneurs. The bank’s asset finance facility offers SMEs a repayment period of up to four years to purchase new equipment or replace depreciating assets, which Mr. George Ogbonnaya, Group Head of Business Banking, said is critical for SMEs to thrive. In recognition of its commitment to SMEs, FCMB has received several awards, including “Best Bank with the Highest Impact on SMEs in Nigeria” for the second year in a row.
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Nigeria: Banks set on fire in protest over naira shortage
Protests have erupted in Nigeria over a shortage of the new naira notes, which have been redesigned to replace dirty cash and promote a cashless society. Customers have set fire to two commercial banks and looted ATMs in Warri and Benin City, while other banks have been broken into. The Central Bank of Nigeria has not released enough of the new notes to satisfy demand. The protests come 10 days before elections in the country, with President Muhammadu Buhari facing calls to take action to avoid losing votes for the ruling All Progressives Congress.
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Nigeria: Sterling Bank appoints director
Sterling Bank Plc has appointed Manish Singhal as a non-executive director. Singhal, who has over 26 years of experience in the financial services industry, is the general manager of operations, International Banking Group, at State Bank of India, where he oversees operations and information systems, human relations, and strategy. He has also worked as a full-time director and chief financial officer at SBICAP Securities Limited.
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Kenya: Nigerian digital bank Umba launches services
Nigeria-based digital bank Umba has launched its services in Kenya, following its acquisition of a majority shareholding in Daraja Microfinance Bank. The bank offers a range of services including current accounts, savings accounts, fixed deposit accounts, lending, and payments, with a focus on serving Africa’s underserved market. Umba aims to offer a transparent, low-fee service, and has strong backing from leading fintech investors including Costanoa Ventures and Monzo founder Tom Blomfield.
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Nigeria: Mobile banking usage triples year-on-year
The Central Bank of Nigeria (CBN) policy mandating a cashless economy is driving the growth of mobile payment gateways. The recent surge in the use of mobile banking has resulted in failed banking apps and customers being stranded, as Nigeria’s infrastructure is not robust enough to handle the volume of transactions. The Chairman of Voriancorelli and Cofounder of Cellulant, Bolaji Akinboro, said the problem lies with the mobile network backbone, which is not being invested in properly by the state. The CBN intends for a cashless economy to be driven by a mobile-first generation by 2025, but Nigeria’s lack of smartphone access and underdeveloped infrastructure is an issue.Regenerate response
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Nigeria: Market traders protest against shortage of Naira notes
Angry market women in Warri, Delta State, Nigeria, protested against the shortage of Naira notes due to the Central Bank of Nigeria’s enforcement of the cashless policy. The protesters, who carried placards and leaves, besieged commercial banks in the area, forcing them to close abruptly, and burnt tires along busy roads, causing heavy gridlock. The traders rejected the Nigerian government’s cashless policy and demanded that banks release their money so they can carry out their businesses and take care of their families. Security operatives were spotted trying to address the protesters, but they insisted that the banks must release their money.
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Nigeria: Moody’s downgrades debt ratings of several banks
Moody’s has downgraded the long-term deposit ratings, issuer ratings, and senior unsecured debt ratings of nine Nigerian banks including Guaranty Trust Bank, Zenith Bank, and First Bank of Nigeria. The ratings were lowered to Caa1 from B3. The downgrade reflects a combination of Nigeria’s weakened operating environment and the interlinkages between the sovereign’s weakened creditworthiness and the banks’ balance sheets, according to Moody’s. The banks have significant exposure to the Nigerian government, with 28% of their aggregate assets in government debt as of June 2022. The outlook on the long-term ratings is stable.
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Nigeria: UBA appoints first female CEO, Abiola Bawuah
The United Bank for Africa (UBA) has appointed Abiola Bawuah as CEO, the first woman to hold the role. Bawuah was previously regional CEO for West Africa, supervising the bank’s operations in nine countries. The UBA Group has also made several other executive appointments, including Chris Ofikulu as regional CEO for West Africa, Uzoechina Molokwu as deputy managing director of UBA Ghana, and Ayokunle Olajubu as managing director/CEO of UBA Liberia. Theresa Henshaw was appointed CEO of UBA UK and Samuel Oni retired from the board after eight years.
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Nigeria: Bank customers lost more than naira 1 billion to fraud in 3 months
Customers of Nigerian banks lost over N1bn ($2.7m) to fraud via bank branches and mobile channels in Q2 2022, according to a report by the Financial Institutions Training Centre (FITC). FITC recorded 67,878 fraud cases during the period, with a decline in the amount of fraud compared to Q1 2022. The amount lost via the web channel declined significantly, while the amount lost through the bank branch and mobile channels increased by 497.56% and 65.74%, respectively. FITC advised banks to improve their internal control measures to prevent fraud.
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Nigeria: Central bank extends timeline for old naira notes
Nigeria’s central bank has extended the deadline for citizens to turn in old naira notes. The original deadline was January 31, but has now been pushed back to February 28. The move is part of a larger effort by the bank to phase out older notes and replace them with updated versions.
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Nigeria: Opposition leader calls for extension of deadline for old naira notes
Nigeria’s opposition presidential candidate Atiku Abubakar has urged the Central Bank of Nigeria (CBN) to extend a January 31 deadline to phase out old high-value banknotes, which is feared will disrupt business in the cash-reliant economy. The CBN began releasing newly designed notes last month, however, many Nigerians say they are not yet available in banks. The main opposition party’s candidate in next month’s presidential election, Atiku said it would be impossible for most of Nigeria’s unbanked population to turn in their old notes in time.
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Nigeria: Omolaja steps down at LivingTrust
LivingTrust Mortgage Bank announced that Omolaja resigned as an independent non-executive director and chair of the company’s Board Investment and Credit Committee, stating that his resignation was voluntary and was accepted by the Board of Directors on January 20th, 2023. He left to pursue other personal aspirations. The bank reported a 79.3% surge in net profit to N909.2 million for the financial year 2022 and expects the bottom line to hit N258.9 million this quarter and revenue N903.8 million.
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Nigeria: Access Bank launches new five-year plan
Access Holdings has unveiled a five-year plan to expand Nigeria’s biggest lender, Access Bank, into other markets including France, Hong Kong, Malta, Dubai, Lebanon, China, and Mumbai by 2027. The bank plans to expand its retail banking business into a digital sales and service provider by 2027, and is targeting to increase its customer base by an additional 125 million by 2027, with 100 million of those customers being retail clients.
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Nigeria: financial infrastructure firm TeamApt rebrands as Moniepoint
TeamApt, a fintech company offering one of the largest commercial banking systems in Africa, has relaunched as Moniepoint. The platform focuses on making banking services accessible to all, including low-income households and small businesses. The platform offers a wide range of services including online account opening, fund transfers, bill payments, and airtime top-up. Moniepoint aims to enhance financial inclusion in Africa and bridge the gap between the banked and unbanked population in the continent.
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Nigeria: CBN cracking down on old naira notes
The Central Bank of Nigeria (CBN) plans to increase pressure on commercial banks still dispensing old naira notes through their ATMs as the deadline for phasing out the old notes approaches. The Director of the Legal Services Department of the CBN, Kofo Salam-Alada, said the CBN is issuing new naira notes daily and has a monitoring team checking banks and ATMs. The deadline for the old naira notes of N200, N500 and N1000 to be legal tender is January 31.
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More bank workers in Nigeria are committing fraud
A report by the Financial Institutions Training Centre (FITC) revealed that more bank workers in Nigeria are committing fraud. The report, which covered the second quarter of 2022, found that 19 bank employees were sacked during that period for fraudulent activities, a 90% increase from the first quarter of 2022. There was also a 375% increase from the same quarter in 2021. With a total of N1.17 billion ($2.5 million) lost to fraud across 24 banks in Nigeria during the second quarter, 73 bank staff were reported to have been involved in the activities, a 27.6% increase from the first quarter.
Tags: Nigeria