E-Financial
Agusto & Co: Elevated CRR Level Moderated Banking Industry’s Performance in FY 2020

The Nigerian banking industry would have recorded a return on average equity (ROE) of 31.6 per cent if not for the aggressive implementation of the cash reserve requirement (CRR) policy in 2020, Agusto & Co. Limited has said.
In its flagship 2021 Banking Industry Report, the rating agency said the elevated CRR level moderated the banking industry’s performance and liquidity position during the year under review.
The report reviewed the banking industry structure, financial condition, the regulatory environment in addition to the macroeconomic environment and its impact on the Nigerian banking industry.
Specifically, Agusto & Co in the report stated that assuming the sterile CRR were invested in treasury securities at 5 per cent, N482 billion would have been added to the Industry’s profit before taxation.
This, they argued, would have increased the Industry’s return on average equity by 11 per cent to 31.6 per cent in the financial year ended 31 December 2020.
According to Agusto & Co, “The CBN’s policies targeted at lowering interest rates have persisted especially given the dire need to stimulate the economy following adversities created by the pandemic.
However, given the need to moderate inflation amidst efforts to maintain a stable exchange rate, the cash reserve requirement was increased and standardised to 27.5 per cent for both merchant and commercial banks.
The standardised CRR was implemented alongside discretionary deductions. As at FYE 2020, the Industry’s restricted cash reserves exceeded N9.5 trillion and translated to an effective CRR of 37 per cent.
“It is noteworthy that Nigeria has the highest reserve requirement in sub-Saharan Africa. South Africa, Kenya and Ghana all have CRR’s of below 10 per cent. We believe the elevated CRR level moderated the Industry’s performance and liquidity position during the year under review.
Assuming the sterile CRR were invested in treasury securities at 5%, N482 billion would have been added to the Industry’s profit before taxation. This would have increased the Industry’s return on average equity (ROE) by 1110 per cent to 31.610 per cent in the financial year ended 31 December 2020.”
Agusto & Co. added that the reliability of business continuity measures was tested in 2020, considering the movement restrictions that lasted for months.
Most banks, Agusto & Co. stated, showed resilience through innovative measures including remote work arrangements and upgrade of network infrastructure to accommodate higher traffic on digital channels.
“These arrangements also provided support during the mandatory curfew elicited by the civic unrest that followed the #EndSARS protests in October 2020.
“Indeed, the pandemic brought to the fore, technology’s crucial role in deepening financial services as some banks recorded as much as a 50 per cent increase in digital banking transaction volumes.
However, these gains were limited by the CBN-induced reduction in bank charges, which took effect in January 2020. As a result, electronic banking income declined by 27.3 per cent, accounting for a lower 13.2 per cent (FY 2019: 21.1%) of non-interest income, “the report stated.
According to the report, the COVID-19 pandemic brought about an extraordinary test for the global community.
It added, “Although the global COVID mortality rate stands low at about 2.2 per cent, casualties increased from less than 3,000 in December 2019 to about 3.9 million as at 30 June 2021. Nigeria’s mortality rate stood comparably lower at about 1 per cent as at the same date.
However, the local economy had its fair share of pandemic-related adversities. However, leveraging lessons from the 2016/2017 economic recessions, the Nigerian banking industry was better prepared in 2020.
“Proactive measures in the form of forbearance granted by the Central Bank of Nigeria CBN, enabled banks to provide temporary and time-limited restructuring of facilities granted to households and businesses severely affected by COVID-19.
There was generally a cautious approach to lending in the Industry, given difficulties in the operating environment.
Although gross loans and advances grew by 12 per cent, loan growth was negative when the 19.3% naira devaluation is considered. Underpinned by the forbearance and proactive measures adopted by banks, the NPL ratio improved to 6.6 per cent (FYE 2019: 7.6%).”
E-Financial
UBA Secures N5Bn BoI Fund to Boost Women Entrepreneurs, Others

United Bank for Africa (UBA) Plc has secured a N5 billion loan facility from the Bank of Industry (BOI) to strengthen Nigeria’s micro, small and medium enterprises (MSMEs), with a special focus on women-owned businesses and key growth sectors.

Oliver Alawuba, GMD, UBA
The fund, drawn from the Federal Government’s MSME Fund, is designed to boost economic activity by providing affordable financing to entrepreneurs in Green Energy, Education, Healthcare and Women-Led Enterprises.
Oliver Alawuba, group managing director/chief executive officer, UBA, said the bank remains committed to removing the financial hurdles that stifle small businesses. He noted that MSMEs form the backbone of any developing economy and must be supported to thrive.
“At UBA, we recognise the pivotal role MSMEs play in driving economic development. By offering loans at a competitive 9% interest rate with a three-year tenor, we are creating opportunities for businesses to scale. Our message to entrepreneurs is clear: don’t let this opportunity pass you by,” Alawuba stated.
Under the scheme, entrepreneurs can access up to N5 million each, with a three-month moratorium on principal repayment to allow businesses stabilise before repayment begins.
Shamsideen Fashola, group head of Retail and Digital Banking, UBA, described the initiative as a strategic intervention to drive financial inclusion and long-term development.
“This programme is targeted at sectors that are central to Nigeria’s sustainable growth. By providing affordable funding to these businesses, we expect to see expansion, job creation and stronger contributions to the economy,” Fashola said.
Also speaking, Alero Ladipo, group head of Marketing and Corporate Communications, UBA, stressed the importance of the initiative for women entrepreneurs in particular.
“What sets this scheme apart is its accessibility and business-friendly terms. We urge eligible businesses, especially women-owned enterprises, to take advantage of this window by visiting any UBA branch or applying online,” she said.
UBA, one of Africa’s largest financial institutions, operates in 20 African countries and major global financial centres including the UK, USA, France and the UAE.
The bank serves over 45 million customers worldwide and employs more than 25,000 people across its network.
E-Financial
CBN Releases Bank Customers’ Bill of Rights, Obligations

Central Bank of Nigeria (CBN) has released Bank Customers’ Bill of Rights and obligations to the public giving customers the right to be informed, right to choose, right to safety, right to privacy and confidentiality, and the right to redress.
The report, released at the “CBN Fair” held in Lagos, with theme: “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development”.
In the bill of right customers also have right to good service, right to equality and right to free monthly statement of account.
On the other hand, the report listed certain obligations that a customer owes to his or her bank.
They include duty to financial obligations, duty to protect instruments and information, duty to provide factual information and not to mislead the bank, duty to report suspected fraud or error and duty of personal safety and safety of assets.
The document, described the customer as the most important person in the economy and every business succeeds only when the customer is happy.
Describing the customer as a king, it said: “As a king, the customer has many rights. But a king also has duties which he owes himself and the society. In Nigeria, customers of banks have certain rights and duties guaranteed by law, regulation and conventions”.
The report disclosed that a bank customer, has a right to disclosure of information from his/her bank on products and services the bank offers.
“The information provided must be complete, relevant and truthful. Your bank must explain to your understanding all contractual terms and charges prior to the consummation of any agreement or contract. This right enables you to have relevant information in order to make rational choices. It amounts to a breach of right if your bank fails to provide this information or deliberately misleads you in anyway,” it said.
According to the apex bank, bank customers also have a right to select from the range of products and services made available by your bank at competitive prices.
“This means that as a customer, you can, at all times, decide on the product or service to accept/purchase and the ones to decline. It is wrong for a bank to restrict your choices or compel you to accept/purchase products or services that are ill-suited for your needs. Where you are not satisfied with your bank’s service delivery on any product or service, you have the right to end the contract or even the banking relationship provided you settle all outstanding commitments,” it said.
The CBN explained that the right to safety requires a bank to guarantee all its customers a secure and conducive banking environment devoid of threats to their safety and health.
“You have the right to be reasonably protected from accidents while on the premises of your bank. You also have the right to be protected from negative effects of pollution of any kind whether arising from your bank’s operations or from other sources. It is necessary to stress that your bank is obligated to adhere strictly to applicable safety and directives to ensure that your safety and well being are adequately guaranteed while you are on the premises of your bank,” it said.
Continuing, the apex bank also highlighted the customers right to privacy and confidentiality.
It explained that as a bank customer, one has the right to freedom from disclosure of your account details by your bank as intrusion into your account by third party.
In other words, a bank is not to divulge your account information to a third party; a bank must also protect customers’ information from unauthorized access by a third party.
It however, stated that there are, expectations to this right where a bank is required by law to make disclosure; and where a customer consents to the disclosure.
“A bank must provide its customers a redress mechanism to express their displeasure or grievance. The mechanism must be free, accessible, transparent, timely and convenient. You have a right to efficient complaints management system through which you can lodge complaints against your bank. You also have the right to be kept abreast of resolution process (acknowledgment, feedback, updates, and explanation) and ultimately, basis of decision. Where you are not satisfied with the decision of your bank, you have the right of review either by your bank, the Central Bank of Nigeria (CBN) or the court,” it stated.
The CBN however, stated that all customers have a right to value for their money which involves the right to be treated with respect and dignity by banks and their representatives.
“The hallmark of banking is customer satisfaction and as such your bank would have failed if it was unable to offer quality and value-adding banking services to you as a customer. Part of this right is that your bank must provide appropriate response to your needs and complaints,” it said.
E-Financial
SEC Partners Chainalysis to Tackle Rising Crypto Scams

A surge in cryptocurrency fraud has prompted the Securities and Exchange Commission (SEC) to strengthen its monitoring measures.
The regulator has partnered with blockchain analytics firm Chainalysis to improve its ability to detect and disrupt illicit activity.
This move follows growing concerns about the security of Nigeria’s expanding digital asset market.
At a joint webinar themed “Combating Scams with Blockchain Intelligence,” Dr. Emomotimi Agama, director-general, SEC, stressed the need for coordinated action.
He said transparency in crypto transactions should be the foundation of enforcement in the sector.
Agama warned that without collaboration, fraudulent activity could grow more dangerous in the future.
The SEC plans to use blockchain’s permanent transaction records to trace and monitor illicit movements of funds. This will include identifying wallet clusters, tracking fund transfers, and analysing transaction histories on networks such as Bitcoin and Ethereum.
Agama said these measures would help the commission detect scams earlier and respond faster.
The Chainalysis 2025 Crypto Crime Report provided data that reinforced the urgency of the SEC’s initiative.
According to the report, illicit crypto addresses received $178 billion worldwide over the last five years.
The highest volume was recorded in 2022, with $54.3 billion, followed by $46.1 billion in 2023 and $40.9 billion in 2024.
Agama said these figures showed the scale of the problem and the need for advanced analytics in enforcement work.
He also noted that Nigeria must improve its technical capacity to match the sophistication of modern financial crimes.
The partnership with Chainalysis is expected to help bridge this capability gap.
The SEC is working under the framework provided by the Investment and Securities Act (ISA) 2025, which took effect in April.
Agama described the law as a key step toward establishing clear rules for the digital asset market.
It also enables cooperation between Nigerian regulators and international partners without discouraging innovation.
He called for active collaboration between regulators, technology providers, and industry players to address fraud before it escalates. “
With all the various tools at our disposal, we must brace up for the challenges ahead,” Agama said.
He added that the collective goal should be to stop criminal activity at its source.
The SEC’s collaboration with Chainalysis is positioned as a strategic move to safeguard investors and improve market integrity.
It reflects an effort to place Nigeria among regional leaders in regulated digital finance.
By integrating blockchain analytics into its operations, the commission aims to create a safer environment for crypto transactions in the country.
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