A high court in Akure, Nigeria has granted a garnishee order directing the Central Bank of Nigeria (CBN) to freeze the account of Polaris Bank over a judgment debt of N2.16 billion ($5.3 million). The order was issued by the judge after an application was filed by the Ondo attorney-general, who claimed the bank failed to meet the conditions of a stay of execution of an earlier judgement. The bank was found liable for mismanaging the account of the Ondo ministry for local government and chieftaincy affairs, and ordered to make a refund and pay damages, but failed to do so.
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Africans turning to finance apps
A report by Google and AppsFlyer has revealed a significant increase in finance app installs across Africa, showing that more people are turning to apps and technology as a way of managing finances and navigating economic uncertainty. The report analyzed more than 140 million installs, across 3,000 finance apps, and found that installs across the continent grew 25%. Ghana, Nigeria and Kenya were the main contributors to this rise
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Nigerian banks stock ATMs with new naira bills
Nigerian banks have stopped over-the-counter payment with new naira and have moved the same to the paying machines, known as Automated Teller Machines (ATMs), BusinessDay findings have revealed. This is in response to the directive by the Central Bank of Nigeria (CBN) last week that all banks should with immediate effect load the ATMs with the new naira and stop over-the-counter disbursement.
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CBN lending to commercial banks increases
Nigerian banks have borrowed N11.15 trillion from the Central Bank of Nigeria (CBN) in 2022 via the Standing Lending Facility window, which is a line of short-term credit provided for commercial banks to meet immediate short-term withdrawals from their customers. Borrowing increased significantly month-on-month and reached N1.93tn in June. However, borrowing through the CBN’s Repo declined by 24% to N10.7tn in 2022 compared to N14.07tn in 2021.
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Access Holdings abandons takeover of Sidian Bank
Access Holdings’ planned takeover of Kenya’s Sidian Bank has been halted due to the regulator’s concerns that the deal would result in a significant concentration of market share. The Central Bank of Kenya had previously approved the takeover and the two companies had signed a binding agreement, but the regulator has since decided to reject the deal.
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GTBank UK fined for AML failures
The UK subsidiary of Nigeria’s Guaranty Trust Bank (GT Bank) has been fined £7.6m ($9.3m) by the Financial Conduct Authority (FCA) for further failures in its anti-money laundering systems and controls, after previously receiving a fine for similar failures in 2013. Despite the previous fines and warnings, the bank failed to take appropriate action to fix the issues, according to the FCA. GT Bank did not dispute the findings and agreed to settle, which made it eligible for a 30% discount on the fine.
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Banks release guidelines as enforcement of CBN withdrawal policy begins
The Central Bank of Nigeria (CBN) has begun enforcement of a policy that limits the amount of cash that can be withdrawn from banks, and Nigerian banks have released guidelines on how to comply with this policy. The policy is meant to curb money laundering and other illicit financial activities, and limits cash withdrawals to N500,000 ($1,346) per day, and N3 million ($8,377) per month.
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Nigeria’s banking sector sees poor performance in 2022
Nigeria’s banking sector ended the year with poor performance as five banks saw their value drop 5.5% from N2.57tn ($6.8bn) in 2021 to N2.43tn ($6.5bn) at the close of 2022, according to data from the Nigerian Exchange Limited. The share prices of all five banks, known as Tier-1 banks, also fell at the end of 2022 compared to the previous year. Analysts attribute the slump to a lack of foreign investors in Nigeria’s capital market.
Categories: BanksTags: Nigeria -
PennyTree launches retail banking app
Fintech company PennyTree has launched a new app that provides retail banking services for individuals and merchants. Through the app, users can carry out regular banking activities such as transfers, save funds in a secure wallet and create business accounts. The company also announced the launch of a merchant community to serve as a support group for merchants at different levels of scale. The community is open to merchants at any stage of their growth journey, as well as individuals looking to start a side hustle.
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Stanbic IBTC Rejigs Board
Stanbic IBTC Holdings has appointed Stanley Jacob as head of its fintech subsidiary, Stanbic IBTC Financial Services, following regulatory approval. The appointment comes alongside several other changes at the financial holding company’s subsidiaries. CEO Demola Sogunle said the appointments were in line with the firm’s tradition of rewarding excellence and would strengthen its capabilities for better customer service delivery.
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CBN reappoints two directors
The Nigerian Senate has confirmed the appointment of Aishah Ahmad and Edward Adamu for second terms as deputy governors of the Central Bank of Nigeria (CBN). Both officials joined the CBN in March 2018 and are set to continue in their roles for the next four years. Prior to joining the CBN, Ahmad was executive director for retail banking at Diamond Bank and has a master’s degree in finance and management from Cranfield School of Management in the UK. Adamu is a civil servant with a career spanning over 35 years.
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BUSINESS
CBN says Nigeria to become cashless by 2025
The Central Bank of Nigeria (CBN) has set a target of achieving a cashless economy by 2025. The bank’s Payments Vision 2025 document aims to create an efficient electronic payment system infrastructure that can facilitate financial services in all sectors of the Nigerian economy, while providing secure, reliable, and user-centric financial solutions that are compliant with international standards. The use of cash is already in decline in Nigeria, as electronic bill payments, mobile phone top-ups, and mobile and instant payments have become more popular.
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Union Bank exits NGX-30 index as Wema Bank joins
Union Bank of Nigeria and Oando have left the NGX-30 index, a list of the top 30 companies listed on the Nigerian Exchange (NGX) in terms of market capitalisation and liquidity, while Wema Bank and BUA Foods have joined the list. MRS Oil was added to the oil and gas index and Oando was removed, while African Alliance Insurance was removed from the insurance sector.
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Nigeria’s most memorable corporate deal in 2022 was between Titan Trust
Titan Trust Bank has acquired Union Bank in Nigeria through a mandatory takeover. The new company acquired 1,927,532,558 ordinary shares in Union Bank, which represented 6.59% of the company’s shareholding, valuing the shares at 50 kobo each. Titan Trust Bank was established in December 2018 and received its national banking license in April 2019. Union Bank, one of the oldest and most successful financial institutions in the country, was established in 1917 and has a network of over 255 sales and service centres across Nigeria and more than 925 ATMs.
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Banks borrowing from CBN drops 15% to N11trn in 2022
Banks borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) fell 15% to N11tn ($30.3bn) in 2022, down from N13tn the previous year, due to a slowdown in business activity and a decrease in short-term cash requirements. The CBN lent money to banks and merchant banks through the SLF at an interest rate of 100 basis points above the Monetary Policy Rate. Finance experts said the drop was caused by tight liquidity conditions in the banking sector. However, VP of Highcap Securities, David Adnori, attributed it to economic uncertainty following the 2023 general election.
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Nigerian Banks and Fintech Companies Suspend International Transactions on Naira Cards
Several Nigerian banks and fintech companies have suspended international transactions on naira cards. The directive, which is set to come into effect on December 31, will also affect offshore ATMs and point of sale (PoS) transactions across the country. The move is reportedly connected to the Central Bank of Nigeria’s (CBN) policy of reducing dollar spending abroad and saving foreign exchange for the economy. In March, financial institutions in Nigeria cut international spending on naira cards from $100 to $20 per month.
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Zenith Bank announces retirement of two Executive Directors from its Board
Zenith Bank has announced that two of its Executive Directors, Ummar Shuaib Ahmed and Dennis Olisa, will retire from its board on December 28, 2022, after their tenure as executive directors has ended.
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WEMA announces CEO’s retirement, appoints new MD/CEO
Ademola Adebise, the managing director of WEMA Bank, will retire on January 2, 2023, after 13 years of service at the bank. His position will be filled by Moruf Oseni, the current deputy managing director, subject to the approval of the Central Bank of Nigeria.
Categories: Banks