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CBN to Create Hot Spots to for Financial Inclusion

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Malam Sanusi Lamido Sanusi, governor of the Central Bank of Nigeria (CBN) has said that the apex bank will partner some satellite system companies to boost international telecommunication services in the country by creating hot spots.

Sanusi, who disclosed this at a meeting with a World Economic Forum Group in Abuja on Tuesday, said that the synergy would enhance implementation of financial inclusion in Nigeria.

The focus of the meeting was “Promoting Global Financial Inclusion: Overcoming Key Barriers through Public–Private Collaboration.’’

NAN reported that Sanusi identified lack of infrastructure as a major challenge to the implementation of the policy.

He said that the least expensive way of deploying products was technology, but said that the low level of internet penetration around the country remained a problem.

He also said that excessive reliance on telephone companies in the country had its problems “because in this country, telecommunication companies make a lot of money from Small Message Service (SMS)”.

“But, the incentives to invest in order to have a bandwidth are limited unless it has additional commercial values.

“So, we have to figure out something and for example, one of the things we have figured out is to see if we can use some of the satellite companies to drop internet across the country”.

According to him, the idea is to have internet services in each of the 774 local government headquarters in the country and to create hot spots.

The hot spots, he said, would help to create internet cafe, mobile agents, Point of Sales (POS) operations, Automated Teller Machines (ATM) operation, among others.

The apex bank governor said that financial inclusion would not be achieved without strong financial literacy and education to help people to take decisions on personal financial issues.

On efforts of the bank to ensure financial inclusion through Cashless policy, he said that there had been continuous progress with the policy.

“The simple example is on the POS; we started with 11,000 terminals in the entire Lagos area with less than 6,000 active POS terminals and were doing transactions of N5 million to N10 million per day.

“Today, we have got more than 150 thousand POS terminals in Lagos; about 20 per cent of them are active and we are doing between N1billion and N2.5 billion on POS transactions daily,’’ he said

Sanusi said that there had been general reduction in cash transactions in the country and that banks would strive to harmonise the Know-Your-Customer (KYC) policy to capture persons that were excluded in the banking system.

“A major bottleneck in the phase of financial inclusion is the identification of customers with a unique ID; I don’t know what it is in other countries, but here it is serious,’’ he said.

According to him, without proper identification, there will be a limit to the amount of money that can be given to a customer for doing business.

He said that the CBN would, on February 14, 2014, officially launch the second phase of the biometric project, adding that the contract had been awarded and that work on it was ongoing.

He said that the biometric project was to ensure that every customer of a bank, a micro finance company or any other financial system, was captured on a central data-base.

“Once a customer has been captured and the finger prints taken, he will need no form of identity to collect or to pay cash anywhere in the country,” Sanusi said.


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E-Financial

Nigerian Manufacturing Sector Contracts for 5th Consecutive Month – CBN

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The Manufacturing Purchasing Managers’ Index (PMI) in September stood at 46.9 index points, indicating a contraction in the Nigerian manufacturing sector for the fifth month.

This was disclosed by the Central Bank of Nigeria (CBN) in its September PMI report released last week.

According to the report, four out of the 14 sub-sectors surveyed reported expansion (above the 50 per cent threshold) in September.

It listed the expansion order as electrical equipment; transportation equipment; cement and nonmetallic mineral products.

It said the remaining sub-sectors reported contractions in the following order: petroleum & coal products; primary metal; furniture & related products; printing & related support activities; food, beverage & tobacco products; textile, apparel, leather & footwear; chemical & pharmaceutical products; fabricated metal products and plastics & rubber products; while the paper product sub-sector was stable.

Production

At 47.3 points, the production level index for the manufacturing sector indicated contraction in September for the fifth consecutive month.

Of the 14 sub-sectors surveyed, five recorded increased production level, one reported same level of production, while eight recorded declines in production.

New Orders

At 46.4 points, the new orders index also contracted in September for the fifth consecutive month. Six sub-sectors reported expansion in new orders, while the remaining eight recorded contraction in the month.

Supplier Delivery Time

The manufacturing supplier delivery time index stood at 53.5 points in the month, indicating a faster supplier delivery time for the fifth time.

Six of the 14 sub-sectors recorded improved suppliers’ delivery time, five reported same level, while three recorded slower delivery time

Employment Level

The employment level index stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.

Of the 14 sub-sectors, two recorded growth in employment, three recorded same level of employment, while the remaining nine recorded lower employment level in the review month.

Raw material Inventories

The manufacturing sector inventories index also contracted for the sixth consecutive time in September to 43.0 points. Four of the 14 sub-sectors recorded growth in inventories, while the remaining 10 recorded lower raw material inventories.


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FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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