E-Financial
CBN Allows Foreign Banks to Give Loans in Dollar
Central Bank of Nigeria on Monday authorized foreign banks in the country to work with their parent companies in availing and syndicating foreign currency-denominated loans (dollar loans) to Nigerian companies.
The apex bank said the policy aligns with its mandate to promote financial system stability. In the Guidelines for the Regulation of Representative Offices of Foreign Banks in Nigeria, signed by CBN’s Director of Financial Policy and Regulation Department, Muhammad Musa, it was stated that a bank licensed under any foreign law, whose registered head office is outside Nigeria, or any financial institution licensed under foreign law, whose primary business includes the receipt of deposits, granting of loans and/or provision of current and savings accounts, are covered by the guidelines.
This include foreign-owned operating bank/financial holding company that is foreign-based, that owns controlling interest in one or more banks or institutions whose primary business includes the receipt of deposits, granting of loans and provision of current and savings accounts.
The guidelines are backed by Sections 6(1) and 8 (1) of the Banks and Other Financial Institutions Act 2020 (BOFIA) respectively which states that “no foreign bank shall operate in Nigeria without prior approval of the CBN”.
The banks are also authorized to market the products and services of its foreign parent or an affiliate of the foreign parent licensed and domiciled outside Nigeria.
They can also carry out research activities in Nigeria on behalf of the foreign parent and also serve as a liaison between the foreign parent and local banks, private institutions within Nigeria and other customers of the foreign parent based in Nigeria.
They are also authorized to connect banks and other financial institutions to their parent firm, and assist exporters in Nigeria with information related to the laws and markets of target countries in which the foreign parent or any of the Group’s affiliates has a subsidiary.
Part of the responsibilities includes collating and distributing economic and financial information or country reports to its foreign parents for use by their customers and assisting their customers who desire to invest in Nigeria or do business with Nigerian companies subject to the extant Data Protection Regulations.
They are also authorised to connect exporters with potential customers in jurisdictions where the parent company operates; and assist Nigerian exporters with finding new markets through its international offices.
The CBN added; “Representative offices are permitted to record revenue, in so far as such revenue does not relate to non-permissible activities as set out in section 3.2 below and emanates from intra-group services rendered to the parent company with such revenue taxed in accordance with transfer-pricing regulations. Revenue in this provision is limited to line items such as staff costs and business premises leasing fees.”
The banks are not allowed to provide services designated in Nigeria as banking business and provide any commercial or trading activity that may lead to the issuance of invoices for services rendered.
In establishing a representative office in Nigeria, the CBN said a Memorandum of Understanding (MOU) between the CBN and the applicant’s home regulatory supervisor is essential. “Where such an MOU is non-existent, the CBN will work with the home regulatory agency to establish/execute an MOU as soon as possible,” it said.
“Not later than three months after obtaining the Approval-In-Principle, the promoters of a proposed office shall submit an application for the grant of a final license to the CBN,” the apex bank said.
Femi Falana, SAN, has said that the recently imposed 0.5 per cent cybersecurity levy is not meant for individuals.
Femi Falana
Falana made this known in a statement, saying the circular of the Central Bank of Nigeria (CBN), wrongly interpreted the provisions of the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024.
According to the senior lawyer, “The CBN should also apologise to Nigerians for the misleading interpretation of the unambiguous provisions of Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024,”.
Public outcry has greeted the introduction of 0.5 per cent levy on the value of all electronic transactions, by the federal government
According to the announcement, the levy was to be remitted to the National Cybersecurity Fund, overseen by the Office of the National Security Adviser (NSA).
Falana said though the said levy is payable by the businesses listed in the second schedule to the principal Act, the CBN wrongly directed all financial institutions to apply the levy at the point of electronic transfer origination.
“The erroneous interpretation might have arisen from the substitution of ‘businesses’ for ‘business’ in the amendment.
For the avoidance of doubt, by Section 42(a) of the Cybercrime Act 2025 as amended, the businesses which are required to pay the levy are GSM service providers and all telecommunications companies; Internet service providers; banks and other financial institutions; insurance companies; and the Nigerian Stock Exchange,” Falana said.
Wema Bank has launched CoopHub, a new digital solution for Cooperative Societies at a ceremony held on Friday, to commemorate the 79th anniversary of the bank.
CoopHub, the first of its kind in the Nigerian banking industry, is a digital platform designed strategically to transform the way Cooperative Societies operate by providing tailored solutions that bridge the gaps in the traditional framework of Cooperative Societies.
The unique platform insulates Cooperative Societies against prevalent struggles like manual recordkeeping, limited access to loans, poor communication, insecurity, and other restrictions, supporting them with the solutions needed to not only mitigate these problems but also operate with the utmost efficiency.
With CoopHub, leaders of Cooperative Societies can manage every aspect of their community’s operations from a simplified dashboard accessible on their phones, seamlessly managing their Cooperative Society’s finances, communication, member records, analytics and every other detail in real time and on the go.
Members of the Cooperative Societies also enjoy increased access to loans, seamless contribution tracking, secure transactions, and easy communication with the leaders.
Essentially, CoopHub helps Cooperative Societies maintain 100% transparency, reliability, and security, with the option of white labelling for a customised experience.
Disclosing the Bank’s motive for creating CoopHub, Moruf Oseni, Wema Bank’s MD/CEO, highlighted the Bank’s commitment to innovation and customer-centricity.
“Cooperative Societies have many pain points. As a bank that is committed to empowering lives through innovation, we examined the end-to-end value chain of Cooperative Societies and launched CoopHub to provide solutions that address the pains and headaches in the Cooperative Society experience for both the leaders of these communities and the members.
CoopHub is the future of Cooperative Societies and we have designed every detail to address the needs of every player in the Cooperative Society ecosystem and empower these communities for optimal productivity,” he said.
Delving into the unique features of CoopHub, Solomon Ayodele, Wema Bank’s Head of Innovation, added, “CoopHub is taking Cooperatives to an era where conflicts, stressful physical meetings, mistrust, inadequate capital, poor recordkeeping and inefficient governance are all a thing of the past.
With a digitised database for all records, a dedicated User Management section for leaders to manage members efficiently, a transparent overview of contributions for both leaders and members, seamless communication framework that allows for easy planning of meetings and events, and a host of other unique features, CoopHub truly is the solution that every Cooperative Society needs.
To promote community and financial security, CoopHub also offers a three-factor authentication system that ensures that every withdrawal from the Cooperative Society’s account is subject to an approval of three members of the Cooperative Society, including the Admin.
We have been very intentional with CoopHub and I encourage every Cooperative Society to come on board and experience the future of Cooperative Societies through CoopHub”, Ayodele concluded.
CoopHub is now live and open to every Cooperative Society across the world.
This futuristic solution is set to not only empower Nigerian lives with increased access to their needs through Cooperative Societies, but also revolutionise Cooperative Society operations for the best.
The Securities and Exchange Commission (SEC) has unveiled new rules on Issuance and Allotment by Private Companies Securities. The rules declared that any person who issues or allots securities without its prior approval or violates any provisions of its regulations would be liable to a penalty not less than N10 million in the first instance and a further sum of N100,000 for every day the violation continues.
The recommended fine is contained in the proposed new rules on the issuance and allotment of private companies and securities prepared by the Securities and Exchange Commission.
The rules apply to debt securities issuances by private companies either by way of public offer, private placement or other methods as may be approved by the Commission; Registered exchanges and platforms which admit debt securities issued by private companies for trading, price discovery or information repository purposes; Registered capital market operators who are parties in issuances and allotment of debt securities of private companies.
The Commission, which set out stringent punishment for those who violate the regulation, stated: “Any person who issues or allots securities without the prior approval of the Commission, or violates any provisions of these rules shall be liable to any one or more of the following sanctions: i. A penalty of not less than N10 million in the first instance and a further sum of N100,000 for every day the violation continues; ii. Suspension, or withdrawal of the registration of the capital market operator(s) involved; iii. Disgorgement of proceeds/income from the transaction; and iv. The Commission may ratify or rescind a transaction if it is in the interest of the public to do so; v. Any other sanction the Commission deems fit in the circumstance.”
The document stated that a private company may list its securities on a registered securities exchange, adding that such securities must be listed not later than 30 days after completion of allotment.
SEC explained that for a private company to be eligible to issue securities under the regulations it must be a company duly incorporated under Companies and Allied Matters Act (CAMA), or other enabling Laws with at least three years track record of operation.
The regulations pegged the maximum amount a private company can raise within a one-year period at N15 billion provided that where a private company intends to undertake any further debt securities issuance, it shall be required to re-register as a public company.
CBN Misinterprets Cyber Security Provisions – Falana
NAN, SLTV to Partner on Local TV Content Promotion
Nigerians to Pay More to Obtain Multipurpose National ID Cards in 46 Hours
Wema Bank Launches CoopHub, Digital Solution for Cooperative Societies
SEC Issues Rules on Issuance, Allotment of Private Companies’ Securities
IMF says Rising Cyber Threats Pose Serious Concerns for Financial Stability
Sun International Finalizes $14.4M Exit from Nigeria, Sells Interests to RFC
FIRS Rakes in N12.3 Trillion in 2023 – Adedeji
Nigerians Rush as Konga Slashes Prices of Starlink Satellite Internet Kits by 50 Percent
Climate Action Africa Calls for Broader Stakeholder Collaboration to Address Nigeria’s Climate Crisis
News3 days agoPalmPay Bolsters Lagos Agriculture Initiative with Effortless Payment Solutions
Telecom3 days agoAirtel Africa Records Loss as Revenue Falls on Naira Devaluation
Telecom3 days agoAccess Bank, Mastercard Join Forces to Expand Opportunities for Cross-Border Payments for African Businesses and Consumers
E-Business3 days agoKaspersky Reports Show Every Third Cyber Incident was Due to Ransomware
Telecom2 days agoThe Telecoms Sector Cannot be Used Palliative for Economic Woes –Adebayo
E-Financial3 days agoOPay clarifies New CBN directive, Reassures Customers
E-Business2 days agoNigerians to Pay More to Obtain Multipurpose National ID Cards in 46 Hours
E-Financial3 days agoFBNQuest Merchant Bank Reports Strong Financial Performance and Strategic Growth Initiatives in 2023