Connect with us

E-Financial

CBN to Raise DFIs Capital Base to N100Bn

Published

on

Kindly share this post

The likes of Bank of Industry (BoI), so-called development finance institutions (DFIs) will be required to shore up their capital base to N100 billion, if the Central Bank of Nigeria (CBN) goes ahead with its recommendation for a new minimum capital requirement for DFIs.

BoI currently has a capital base of N45 billion and will be required to cough out additional N55 billion if the plan is sealed.

According to a draft regulatory and supervisory framework for DFIs in Nigeria published by the CBN on Tuesday, besides the N100 billion for Wholesale Minimum Capital Institutions (WDFI) and N5 billion for Retail Development Finance Institution (RDFI); other financial requirements include a non-refundable application fee of N100,000.00 for RDFI N250,000.00 for WDFI. There are also: non-refundable licensing fee-   N500,000.00 for RDFI; N1,000,000.00 for WDFI; while change of name fee is N50,000.00.

Besides these, to obtain a finance licence, promoters of a DFI must submit documents such as: “Evidence of payment of a non-refundable licensing fee of N500,000.00 for RDFI or N1,000,000.00 for WDFI, or any other amount as may be determined by the CBN; A copy of the shareholders’ register in which the equity interest of each shareholder is properly reflected; (and) certified true copies of Form CAC 2;” to the CBN before being considered for the grant of a final licence and thereafter, permitted to begin operations

Before all of these however, promoters seeking a licence to operate a DFI must apply in writing to the CBN governor, indicating the class of DFI, and accompanying such with a non-refundable application fee of N100,000, or any other amount deemed necessary by the apex bank.

 In addition to evidence of name reservation with CAC, there must be a detailed feasibility report containing information like the objectives and aims of the proposed DFI; strategy for achieving them; as well as the branch expansion programme for the initial five years.

There must also be proposed training programmes for staff and management, as well as succession plan; a five-year financial projection for the operation of the DFI, showing expected growth and profitability; and details of the assumptions which form the basis of the financial projection.

The CBN also wants to see the organisational structure of the DFI indicating the functions and responsibilities of the top management; board composition and interests represented; and a copy of the draft Memorandum and Articles of Association (MEMART)


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Comments

E-Financial

CBN Investigates 55 Companies over Forex Infractions

Published

on

Kindly share this post

Amidst sustained pressures on Nigeria’s official foreign exchange resources, the Central Bank of Nigeria (CBN), has opened investigations into foreign exchange transactions of 55 companies and individuals.

The apex bank linked them to foreign exchange deals outside the official Investors & Exporters (I&E) window.

CBN Investigates 55 Companies over Forex Infractions

Mr. Godwin Emefiele, CBN governor

The I&E window was created by the CBN as the legitimate platform for buying and selling of foreign currencies.

Some of the major corporate organisations in the list include Stallion Nigeria Limited, a conglomerate involved in several sectors of the Nigerian economy.

The list also includes Nigeria’s leading electronic payment company, Interswitch Nigeria Limited, as well as a leading global shipping line, CMA CGM Nigeria Shipping Limited.

Other big names in the list include Petro-Afrique Energy Services Limited, Steel Force Far East Limited, Auto Petroleum Company Limited, Cavendish Mechanicals Limited, Aquashield Oil & Marine Limited, Haitch & Elf Integrated Services Limited, Fenog Nigeria Limited, and Promasidor Nigeria Limited.


Kindly share this post
Continue Reading

E-Financial

FG Makes u-Turn on Bank Account Re-Registration

Published

on

Kindly share this post

Federal government on Friday apologised for asking all account holders in financial institutions in the country to re-register their personal details.

FG makes u-Turn on Bank Account Re-Registration

Recall that the federal government had on Thursday ‎ordered that all persons holding accounts across financial institutions and insurance firms should complete and submit self-certification forms to their respective financial institutions.

The notice issued by the government to that effect read, ‎“This is to notify the general public that all account holders in Financial Institutions (Banks, Insurance Companies, etc.) are required to obtain, complete, and submit Self – Certification Forms to their respective Financial Institutions.

“Persons holding accounts in different financial institutions are required to complete and submit the form to each one of the institutions. The forms are required by the relevant financial institutions to carry out due diligence procedures, in line with the Income Tax Regulations 2019.‎”

The directive raised eyebrows, as account holders already possessed Bank Verification Numbers.

Following widespread condemnation that trailed the directive, the Federal Government backtracked on Friday, saying the fresh guidelin‎e was not for all Nigerians.

The government attributed the development to misinformation.

The clarification issued by the government on Friday read, ‎“We apologise for the misleading tweets (now deleted) that went up yesterday, regarding the completion of self-certification forms by Reportable Persons. The message contained in the notice does not apply to everybody. ‎FIRS will clarify Nigerians on the objectives of the directive.”

Also on Friday, FIRS, in a statement posted on Twitter, explained that the guidelines were only for non-residents, as well as people paying tax in more than one country.

Parts of the FIRS statement read, “The Self Certification Form is basically to be administered on Reportable Persons, holding accounts in Financial institutions, that are regarded as “Reportable Financial Institutions” under the CRS.

“Reportable persons are often non-residents and other persons, who have residence for tax purposes in more than one jurisdiction or country.”

“The information that indicates an account holder is a resident for tax purposes in more than one jurisdiction, is expected to be available to Financial Institutions during account opening processes, for the KYC and AML purpose.”


Kindly share this post
Continue Reading

E-Financial

Stanbic IBTC Bank Disowns Lagos ATM Fraudster

Published

on

Kindly share this post

Stanbic IBTC Bank PLC has disowned Tope Olajide, 22-year-old fraudster arraigned for theft of customers deposits.

Stanbic IBTC Bank Disowns Lagos ATM Fraudster

The Bank said this in a statement on Wednesday.

The statement said: “The attention of the management of Stanbic IBTC Bank PLC has been drawn to news currently circulating in the media, about the alleged arraignment of staff of the Bank on charges bordering on the theft of customers deposits.

“The Bank would like to clarify that the defendant, a 22-year-old Tope Olajide, IS NOT, and was at no point in time an employee of Stanbic IBTC Bank PLC.

“The alleged culprit was apprehended around 7:30 am, on Thursday, 27 August 2020, by security operatives after he was exposed by CCTV footage using ATM cards he had allegedly stolen and converted, to make withdrawals from the accounts tied to the stolen ATMs.

“The CCTV footage also showed the alleged culprit pretending to assist customers at ATMs whilst also attempting to fraudulently dispossess the customers of their ATMs.

“He was subsequently arraigned before an Ikeja Magistrate Court on Monday, 14 September, for stealing the debit cards of two customers and using them to unlawfully withdraw the sum of N427,000.

“The Bank would also like to implore members of the public to be security conscious when conducting transactions at ATMs. Customers are advised to report any suspicious actions around them to security operatives who are usually stationed around the Bank’s ATMs, when carrying out transactions at any of our ATM locations.

“As an organisation, we hold dear the values of integrity, and we will continue to prioritise the safety of our customers effectively.”


Kindly share this post
Continue Reading
Advertisement

Social

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Trending