business news

CBN urges Nigerians to embrace eNaira like physical Naira

The Central Bank Of Nigeria, CBN, has urged Nigerians to embrace eNaira just like the physical Naira inorder to increase transparency in revenue and tax collections.

CBN claims that e-Naira is expected to facilitate diaspora remittances, support a resilient payment ecosystem, reduce the cost of processing cash, enable direct and transparent welfare intervention to citizens.

We believe that the continued provision of access to finance to various sectors of the economy will promote inclusive growth and sustainable development.

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MTN and Airtel obtains approval from CBN to launch Momo Payment Service Bank

MTN, Airtel to Launch Momo Payment Service Bank after CBN approval. MoMo is an acronym for mobile money which allows registered agents to perform transactions for customers.

MTN Nigeria Communications Plc says it has received Approval in Principle from the Central Bank of Nigeria (CBN) for a licence application for the MOMO Payment Bank Limited.
This is contained in a notice signed by the Company Secretary, Mrs Uto Ukpanah posted on the website of the Nigerian Exchange (NGX) Limited in Lagos on Friday.

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How eNaira goes live after official launch by president Buhari

An earlier plan to unveil the digital currency on October 1 was shelved. The official launch took place at the State House in Abuja.
Nigeria is one of only a few countries in the world to develop an official digital currency.
The eNaira, has gone live after an official launching by President Muhammadu Buhari on Monday.
The eNaira was developed by fintech company Bitt, which is also behind the creation of CBDC in some East Caribbean countries.

The Central Bank of Nigeria governor, Godwin Emefiele, said 500 million eNaira ($1.21 million) has already been minted.

The CBDC’s digital currency app and its merchant wallet are now live and available for download.
The two apps, eNaira speed wallet and eNaira merchant wallet, are now available on Google playstore and Apple store.

A notice on the enaira website gives details into how the currency and the wallet will work.
“Get Ready With Your Accurate BVN Data For Your Hitch-Free Enrolment,” it says.


President Muhammadu Buhari to unveils e-Naira Monday – CBN

The Central Bank of Nigeria, CBN on Saturday, revealed that President Muhammadu Buhari has been scheduled to formally unveil the e-Naira on Monday.

The e-Naira marks a major step forward in the evolution of money and the CBN is committed to ensuring that the e-Naira, like the physical Naira, is accessible by everyone”.
According to the statement the launching of the e-Naira would mark the beginning of more research for the enhancement of the platform.

A statement issued on Saturday by CBN’s Director of Corporate Communications, Osita Nwanisobi, stated that the e-Naira is now expected to be activated on Monday by the president.


CBN don talk say Nigerians fit use eNaira without internet

Nigerians have been asking if people that doesn’t have Internet-enabled phones will be able to use eNaira.

In response; CBN said that Nigerians without internet-enabled phones will be able to use the eNaira.

“Nigerians can use eNaira without internet”

National news

Former CBN deputy governor, Obadiah Mailafia dies at age 64

Former Central Bank of Nigeria (CBN) deputy-governor, Dr Obadiah Mailafia, is dead.

Mr Mailafia reportedly died at the National Hospital Abuja this morning, September 19. He was 64 years old.

National news

CBN Orders: Banks to publish names, BVN of Forex defaulters

The Central Bank of Nigeria has ordered all banks to publish names of customers who try to break the rules on Forex acquisition on their website.

In a circulate to banks dated Monday, August 30th, the apex bank lamented that it has “received and noted with concern reports of sharp practices by some unscrupulous customers to circumvent the new CBN policy on the sale of forex for overseas personal and business travel”.

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No plan to convert bank customer’ foreign currency into naira, says CBN

The Central Bank of Nigeria (CBN) has assured the public that it will monitor the deposit money banks (DMBs) to ensure they comply with set rules and meet the legitimate foreign exchange needs of Nigerians.

This came as the apex bank dismissed reports of the planned conversion of domiciliary account FX holdings proceeds to naira.

Meanwhile, the News Agency of Nigeria (NAN) reported yesterday that commercial banks in Abuja have set up dedicated teller points for FX transactions in compliance with CBN’s directive. It reported that some of the banks had commenced selling at an official rate of N412/$.

New Category news

Buhari sued over $25bn overdrafts from CBN

Socio-Economic Rights and Accountability Project has filed a lawsuit in court seeking to compel the President, Major General Muhammadu Buhari (retd.), to disclose “spending details of the overdrafts and loans obtained from the Central Bank of Nigeria (CBN) since May 29, 2015, including the projects on which the overdrafts have been spent, and repayments of all overdrafts to date.”

The rights group also wants the president to “explain and clarify whether the $25bn (N9.7trn) overdraft reportedly obtained from the CBN is within the five per cent limit of the actual revenue of the government for 2020.”

The suit followed SERAP’s Freedom of Information request to President Buhari, stating that: “Disclosing details of overdrafts and repayments would enable Nigerians to hold the government to account for its fiscal management and ensure that public funds are not mismanaged or diverted.”

SERAP, in the suit number FHC/ABJ/CS/559/2021 filed last week at the Federal High Court, Abuja, is also seeking “an order directing and compelling President Buhari to disclose details of overdrafts taken from the CBN by successive governments between 1999 and 2015.”

SERAP argues that “secrecy and the lack of public scrutiny of the details of CBN overdrafts and repayments is antithetical to the public interest, the common good, the country’s international legal obligations, and a fundamental breach of constitutional oath of office.”

Joined in the suit as respondents are the Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN; the Minister of Finance, Budget and National Planning, Zainab Ahmed; and the Governor of CBN, Godwin Emefiele.

SERAP also argues that “ensuring transparency and accountability in the spending of CBN overdrafts and loans would promote prudence in debt management, reduce any risks of corruption and mismanagement, and help the government to avoid the pitfalls of excessive debt.”

The rights group said, “By the combined reading of the Constitution of Nigeria 1999 (as amended), the Freedom of Information Act, the UN Convention against Corruption, and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on the government to disclose information to the public concerning details of CBN overdrafts, loans and repayments to date.”

It also said, “The Nigerian Constitution, Freedom of Information Act, and these treaties rest on the basic principle that citizens should have access to information regarding their government’s activities.”

The suit was filed by SERAP’s lawyers Kolawole Oluwadare and Ms Adelanke Aremo.

It read in part, “Transparency and accountability in the spending of CBN overdrafts would also ensure that public funds are properly spent, reduce the level of public debt, and improve the ability of the government to invest in essential public goods and services, such as quality education, healthcare, and clean water.

“It is the primary responsibility of the government to ensure public access to these services in order to lift millions of Nigerians out of poverty and to achieve the Sustainable Development Goals by 2030.

“Transparency and accountability in the spending of CBN overdrafts and loans would also improve the ability of the government to effectively respond to the COVID-19 crisis. This means that the government would not have to choose between saving lives or making debt payments.

“The recent overdraft of $25.6bn (about N9.7trn) reportedly obtained from the CBN would appear to be above the five per cent limit of the actual revenue of the Federal Government for 2020, that is, N3.9trn, prescribed by Section 38(2) of the CBN Act 2007. SERAP notes that five per cent of N3.9trn is N197bn.

“While Section 38(1) of the CBN Act allows the Bank to grant overdrafts to the Federal Government to address any temporary deficiency of budget revenue, sub-section 2 provides that any outstanding overdraft ‘shall not exceed five-per cent of the previous year’s actual revenue of the Federal Government.

“Similarly, Section 38(3) requires all overdrafts to ‘be repaid as soon as possible and by the end of the financial year in which the overdrafts are granted.

“The CBN is prohibited from granting any further overdrafts until all outstanding overdrafts have been fully repaid. Under the CBN Act, ‘no repayment shall take the form of a promising note or such other promise to pay at a future date, treasury bills, bonds or other forms of security which are required to be underwritten by the Bank.

“Similarly, the Fiscal Responsibility Act provides in section 41 that the government ‘shall only borrow for capital expenditure and human development.’ Under the Act, the government ‘shall ensure that the level of public debt as a proportion of national income is held at a sustainable level.

“Section 44 of the Fiscal Responsibility Act requires the government to specify the purpose of any borrowing, which must be applied towards capital expenditures, and to carry out cost-benefit analysis, including the economic and social benefits of any borrowing. Any borrowing should serve the public good, and be guided by human rights principles.

“SERAP has consistently recommended to the Federal Government to reduce its level of borrowing and to look at other options of how to finance its budget, such as reducing the costs of governance, and addressing systemic and widespread corruption in ministries, departments and agencies (MDAs) that have been documented by the Office of the Auditor-General of the Federation.

“Our requests are brought in the public interest, and in keeping with the requirements of the Nigerian Constitution; the Freedom of Information Act; the Fiscal Responsibility Act; the Central Bank Act; the Debt Management Office Act; and the country’s international legal obligations.

“There is a statutory obligation on the respondents, being public officers in their respective public offices, to proactively keep, organize and maintain all information or records about CBN overdrafts, loans, and repayments in a manner that facilitates public access to such information or records.

“Mandamus lies to secure the performance of a public duty in the performance in which the applicant has a sufficient legal interest.

“Unless the reliefs sought by SERAP are granted, the respondents will not provide SERAP with the information requested and will continue to be in breach of their constitutional responsibilities and the country’s international legal obligations and commitments.”


BREAKING NEWS: CBN To Mint Gambia’s Currency

Gambia’s Currency

Central Bank of Nigeria (CBN) has agreed to mint the Gambian Dalasi in principle.

Mr. Godwin Emefiele, the Governor of the Central Bank of Nigeria, consented to the currency minting proposal made by Mr. Buah Saidy, the Governor of the Central Bank of Gambia, who led a delegation to meet him on Tuesday.

Mr. Emefiele stated that Nigeria has a lot of currency production capacity because it has been minting since the 1960s, and that “we are eager to assist in creating your currency.” In terms of cost, we can be incredibly competitive,” he stated.

Earlier, the Governor of the Gambian Central Bank stated that his country is running out of cash and that he wants to learn how to handle his country’s currency needs on an annual basis using Nigeria’s wealth of expertise and expertise.

He stated that they had placed an order for two years of money minting abroad, but that they are considering minting in Nigeria if the country is interested.

Nigerian Security Printing and Minting Company Plc, for its part, said it is prepared if both parties reach an agreement