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OPay, Moniepoint, others to resume onboarding new customers soon- CBN

The Central Bank of Nigeria (CBN) has announced that mobile money operators, including fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint, will resume the enrolment of new customers in a few months.

This update was provided by CBN Governor Olayemi Cardoso during the 295th Monetary Policy Committee (MPC) meeting of the apex bank in Abuja, when the MPC jacked up the interest rate from 24.75 per cent to 26. 25 per cent.

Governor Cardoso explained that the CBN has been engaging with these operators to enhance their operational frameworks.

The goal is to mitigate risks related to money laundering and illicit financial flows.

As part of these efforts, the CBN has introduced remedial measures aimed at tightening the onboarding processes and managing the existing customer base more effectively.

“I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past, and then you will see that sector going back into what they’ve been known to do before, but certainly with a very stronger regulatory framework,” he said.

In April, the apex bank prohibited fintech companies from onboarding new customers, in what has been interpreted as a crackdown on the financial sub-sector by the Cardoso-led CBN.

When asked why the apex bank made the decision, the CBN chief said,

“The fintechs have not been singled out for any exceptional kind of treatment, adding that the CBN remained proud of the exploits of fintech firms in the last number of years and the apex bank would continue to support and strengthen them.

“However, regulation is very critical in a sector that seems to have grown so incredibly rapidly,” Cardoso said, citing illicit flows within the sub-sector.

“More recently, we had course to take a deep dive look at the whole issue of illicit flows and money laundering, particularly within the non-heavy regulated banking system, and we all know some of the issues that came out with cryptos and some of the messages we put out after that, which, of course, gave us some course to know that there is the need for heightened surveillance.”

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Banking

CBN restricts BDCs to one dealer bank per week for $25,000 FX purchase

Foreign education gulped $609.5m in eight months — CBN

The Central Bank of Nigeria (CBN) has introduced new regulations allowing Bureau de Change (BDC) operators to purchase up to $25,000 weekly from a single Authorised Dealer Bank (ADB) to cater to retail forex demand for eligible invisible transactions.

The directive, outlined in a circular from the Trade and Exchange Department and signed by Dr. W. J. Kanya, the Acting Director, is dated February 5, 2025. It sets compliance requirements aimed at promoting transparency and curbing potential forex misuse.

Key Provisions of the New Guidelines include: Single Dealer Bank Rule: Each BDC can only source FX from one authorised dealer bank per week, a measure designed to prevent speculation and enhance regulatory oversight.

It says violators will face sanctions.

According to the bank, authorised dealers must sell FX to BDCs at the prevailing rate in the Nigerian Foreign Exchange Market (NFEM) window, ensuring uniform pricing.

BDCs cannot charge more than Ipercent above their purchase price when selling FX, regardless of its source, to prevent excessive charges and promote fairness.

“Purchased FX can only be used for specific transac-tions, with a cap of $5,000 per transaction per quarter.

Eligible uses include:Busi-ness Travel Allowance (BTA)
/ Personal Travel Allowance (PTA); Overseas school fees ;Overseas medical expenses;
Strengthened Anti-Money Laundering Measures, ” the circular.

To combat financial crimes, the CBN mandates that BDCs to maintain proper records, including the Bank Verification Number (BVN) of end-users.

It also mandates them to endorse disbursed amounts in beneficiaries’ international passports;Strictly comply
with Anti-Money Laundering (AML) laws and Know Your Customer (KYC) requirements.

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To enhance transparency, both ADBs and BDCs must submit reports to the CBN.

They must send weekly reports of FX sales to BDCs in a specified Excel format via teddmo@cbn.gov.ng.

The CBN noted that BDCs must render daily returns on forex purchases and utilisa-tion through the Financial Institutions Forex Reporting System (FIFX).

The CBN warns that any BDC or Authorised Dealer Bank found violating these guidelines-including forex diversion-will face severe sanctions, including the suspension of their dealership license.

In a related development, the CBN has extended the deadline for BDC operators to access the Nigerian Foreign Exchange Market (NFEM) for weekly FX purchases. Initially set for January 31, 2025, the deadline has been pushed to May 30, 2025.

The extension is expected to stabilise the parallel market, improve liquidity, and reinforce the CBN’s commitment to ensuring forex accessibility while maintaining regulatory oversight.

These new measures align with the apex bank’s broader strategy to stabilise the naira, curb speculative activities, and enhance forex market transparency.

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Banking

Nigeria’s economy to expand by 4.17%, inflation to ease in 2025 — Cardoso

The Central Bank of Nigeria Governor, Olayemi Cardoso, on Thursday, said the country’s Gross Domestic Product is expected to grow by 4.17 percent and inflation is expected to ease in 2025.

Cardoso disclosed this at a recent conference, according to Reuters.

While Nigeria’s inflation currently stands at 34.80 percent, Cardoso is optimistic that it is expected to decline as President Bola Tinubu’s reforms start to yield results.

He also said foreign exchange reserves rose gradually, driven by increased oil production. Oil output is forecast to reach 2.3 million barrels per day by mid-year, Cardoso said.

Cardoso pledged to take Nigeria’s foreign exchange reserves to more than $40 billion after recording a $6 billion FX inflow in 2024.

According to Cardoso, the central bank’s priority remained to maintain price stability and to bolster market confidence. To this end, the bank aims to enhance transparency and efficiency within the foreign exchange market.

“With limited opportunities for FX arbitrage, we expect that there will be more appetite for real sector development,” he stated.

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Banking

CBN fines 9 banks N150m each over scarcity of cash in ATMs

The Central Bank of Nigeria, CBN, has issued fines to at least nine Deposit Money Banks for failing to ensure cash availability via automated teller machines, ATMs, during the festive season.
The fines total N1.35bn, with each of the banks fined N150m.

The banks were found culpable after spot checks revealed non-compliance with the Central Bank’s cash distribution guidelines.

A statement released by CBN acting Director of Corporate Communications, Mrs Hakama Sidi Ali, on Tuesday, read: “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make naira notes available through automated teller machines during the yuletide season.

“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

“The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.”

The fine will be debited directly from the banks’ accounts with CBN.

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