Tag: Central Bank of Nigeria

CBN activates Automatic Debit Orders on debtors’ accounts, other defaulters in commercial banks 

Aminu Imam

The Central Bank of Nigeria (CBN) has mandated commercial and merchant banks to begin debiting various loan defaulters. Specifically, the bank asked the financial institutions to debit the accounts of debtors of the Anchor Borrowers Programme CBN activated the Global Standing Instruction (GSI) to comb bank accounts of loan defaulters using their Bank Verification Numbers (BVNs). Recall that the apex bank Governor, Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.  CBN data showed that between September and October 2022, the apex bank…

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CBN unfolds plans for fresh bank re-capitalisation exercise - Cardoso

Aminu Imam

The Central Bank of Nigeria (CBN) says it is planning to implement a new round of banking re-capitalisation for the Deposit Money Banks, (DMBs). CBN Governor, Olayemi Cardoso, announced this at the 58th Annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN), which was held on Friday night in Lagos. The planned re-capitalisation means that DMBs will be required to raise additional capital to meet the demands of Nigeria’s economy. Cardoso noted that President Bola Ahmed Tinubu in his Policy Advisory Council report on the national…

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“CBN doesn’t have a magic wand to solve current economic challenges” – Cardoso

Aminu Imam

Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has stated the Bank does not have a magic wand to solve Nigeria’s current economic challenges. The apex bank’s chief said this in an emailed speech on Tuesday according to reports from Reuters. He said, “The CBN does not have a magic wand that can be waved at the current economic challenges”. Nigeria currently battles a depreciating naira, double-digit inflation poised to reach 30% according to KPMG analysis, and an N87 trillion debt. However, he explained that the CBN can…

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H/Reps move to reduce powers of CBN Governor

Aminu Imam

…Pass Bill to separate positions of Board chairman from governor A Bill to create the position of Chairman of the Board of the Central Bank of Nigeria (CBN), separate from the position of the governor, scaled second reading in the House of Representatives yesterday. Sponsor of the Bill,  Francis Waive, who spoke at plenary in Abuja, said there was need to amend Section 6 to separate both positions, so the governor could be checked and not have all the powers. The Bill also proposed that in the event of the…

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“Old, new Naira notes remain legal” – CBN

Aminu Imam

The Central Bank of Nigeria (CBN) says that all banknotes remain legal tender after reports of anxiety among some members of the public over the legality of old naira banknotes. In an issued statement yesterday, the apex bank’s Director, Corporate Communications, Isa AbdulMumin, said the old naira notes should not be rejected, as they will be issued alongside redesigned banknotes in adequate quantities to banks for the benefit of their customers. The CBN said: “Our attention has again been drawn to reports of a scarcity of cash across some major…

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Forex: CBN crashes dollar, releases $6.7bn to banks

Aminu Imam

The Nigerian currency, the Naira, is experiencing a resurgence against the dollar, as the federal government begins to clear backlogs. The foreign exchange (forex) market witnessed a significant turnover of $2.23 billion in October. The naira also rebounded on the parallel and official markets, as CBN reportedly supplied banks with $6.7 billion to clear backlogs. The volume of dollars traded in the Nigerian Foreign Exchange Market (NAFEM) window increased by 23.8% monthly to $2.23 billion in October 2023 from $1.8 billion in September, showing an increase in Forex inflows. FMDQ data…

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CBN denies plan to re-denominate Naira

Aminu Imam

The Central Bank of Nigeria (CBN) has debunked the rumours that it plans to redenominate the country’s legal tender, the Naira, with effect from January, 2024. This following the wide circulation of a text message in social media yesterday suggesting that the apex bank intends to redenominate the currency. The CBN said for the avoidance of doubt; there is currently no plan by the Bank to restructure and redenominate the naira. The apex bank’s Director of Corporate Communication, Dr. Isa AbdulMumin, in a statement released, said: “We are concerned that this…

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Emefiele resigned as CBN Governor, clearing way for Tinubu’s nominee, Cardoso – Report

Aminu Imam

The embattled Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has purportedly resigned from his position in August 2023, following his suspension by President Bola Ahmed Tinubu. Recall that President Tinubu suspended the CBN boss on June 9, and instructed him to delegate his duties to the Deputy Governor of the Operations Directorate, Folashodun Adebisi Shonubi. According to a Reuters report, Emefiele, who was suspended in June, tendered his resignation letter to President Tinubu. This effectively cleared the way for Olayemi Cardoso, who was nominated on Friday by the President…

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Tinubu nominates new CBN governor, management team for Senate confirmation

Aminu Imam

President Bola Tinubu has approved the nomination of Dr. Olayemi Michael Cardoso to serve as the new Governor of the Central Bank of Nigeria, (CBN), for a term of five (5) years at the first instance, pending his confirmation by the Nigerian Senate. According to a press statement released yesterday by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, the directive is in accordance with Section 8(1) of the Central Bank of Nigeria Act, 2007, which vests in the President of the Federal Republic of Nigeria,…

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CBN denies ‘policy’ to crash exchange rate to N1.25/$

Aminu Imam

The Central Bank of Nigeria, (CBN), has debunked a report that it is planning to introduce a new naira policy that will crash the dollar exchange rate to N1.25 kobo. This is in response to a report that circulated online yesterday, which claimed that the apex bank is mulling out a new FX policy. According to the report, the policy is scheduled for November 2023 and will “better anchor inflation expectations and make for easier conversion to other major currencies”. The report also said the policy will “reverse the tendency for…

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