Central Bank of Nigeria (CBN) has introduced an Electronic Foreign Exchange Matching System (EFEMS) for Foreign Exchange (FX) transactions within the Nigerian Foreign Exchange Market (NFEM).

Yemi Cardoso, Governor, CBN

According to the CBN, the new system will be operational in the Nigerian Foreign Exchange Market by 1 December 2024 after a two-week test run scheduled for November.

In a circular signed by Dr. Omolara Duke, director of the Financial Market Department at the CBN, the apex bank explained that EFEMS is designed to improve governance and transparency in the FX market.

It is also expected to promote a market-driven exchange rate that will be more accessible to the public.

According to the CBN, “the introduction of EFEMS will enhance governance, transparency, and facilitate a market-driven exchange rate accessible to all.”

The system is expected to curb speculative activities, reduce market distortions, and provide the CBN with improved oversight capabilities for regulating the market effectively.

The CBN said it will publish real-time data on prices and buy/sell orders from the EFEMS. Additionally, in collaboration with the Financial Markets Dealers Association (FMDA), the CBN will release the rules for operating the system.

It added that the Nigerian FX Code and revised Market Operating Guidelines will also offer guidance to market participants.

Also, authorized dealers are required to ensure full compliance with the existing guidelines governing the Nigerian foreign exchange market and must complete all necessary documentation, training, and system integrations ahead of the December go-live date.

President Bola Tinubu has transmitted four Fiscal Policy and Tax Reform Bills to the National Assembly for accelerated consideration and passage into law, including Economic Stabilisation Bills, which seeks the repeal of the Federal Inland Revenue Service (FIRS) Act and enactment of the Nigeria Revenue Service Act in its place.

Tinubu also transmitted the Joint Revenue Board (Establishment) Bill, intending to create a tax tribunal and a tax ombudsman for the country.

Others are the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

Tinubu conveyed Bills via a letter addressed to Hon. Abbas Tajudeen, speaker of the House of Representatives , which was read on the floor of the House at plenary on Thursday.

Tinubu stated that the four Bills will help actualise government’s desire for a proper tax and financial regime for Nigeria, and expressed confidence at the usual cooperation of the House of Representatives on such critical matters.

“The proposed tax bills present substantial benefits that align with my government’s objectives and fiscal reform on the economic growth by enhancing taxpayer compliance, strengthening our fiscal institutions and fostering a more effective and transparent fiscal regime,” he said.

The president had in his Independence Day national broadcast said: “To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly.

“These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law.”

Polaris Bank, a money deposit retail bank in Nigeria, has been recognised as the country’s top bank in Micro, Small, and Medium Enterprises (MSME) lending at the inaugural MSME Finance Awards 2024.

The event, organised by Nairametrics and The Economic Forum, took place over the weekend in Lagos. This award highlights Polaris Bank’s dedication to supporting MSMEs through various direct and indirect funding initiatives.

The judges emphasized the bank’s consistent efforts in providing sustainable finance, which has enabled Nigerian entrepreneurs to grow and expand their businesses.

In response to the award, Polaris Bank’s Managing Director, Mr. Kayode Lawal, expressed gratitude and reaffirmed the bank’s commitment to supporting Nigerian MSMEs.

He noted, “We are honoured by this recognition, which underscores our unwavering commitment to empowering micro, small, and medium businesses. These enterprises are essential drivers of economic growth, innovation, and job creation.”

Lawal also praised Nairametrics and The Economic Forum for their recognition, adding, “This award is a testament to our team’s dedication to providing tailored financial solutions. It further motivates us to continue our strategic focus on MSME lending, financial inclusion, and Nigeria’s broader economic development.”

Polaris Bank’s approach to MSME lending aligns with its mission to deliver innovative, customer-centric services that help businesses thrive, further cementing its reputation as a key player in driving Nigeria’s economic progress.