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Reps Ask CBN, NDIC to Verify Status of Savannah Bank

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House of Representatives has mandated the Committee on Banking and Currency to interface with the Central Bank of Nigeria (CBN) and Nigerian Deposit Insurance Corporation (NDIC) to determine the current status of Savannah Bank.

 

The house charged the committee to ascertain whether the bank has fulfilled all the requirements to commence business.

 

This was sequel to a unanimous adoption of a motion by Rep. Magaji Aliyu (APC-Jigawa) at the plenary on Thursday.

 

Aliyu, while moving the motion earlier, said that the operating licence of Savannah Bank Plc was withdrawn by the CBN on Feb. 15,  2002.

 

He said the withdrawal was on the grounds that the bank did not have enough assets to meet its liabilities and did not comply with CBN obligations.

 

According to him, the promoters had been unable to prevent further deterioration of the bank.

 

The lawmaker recalled that the Nigerian Deposit Insurance Corporation (NDIC) took over as liquidator of the bank which led to the sealing off of the branches of the bank all over the country.

 

“The bank challenged the closure in court and in a ruling on Oct. 20, 2006 High Court of the Federal Capital Territory, Abuja, held that the CBN had acted properly in revoking the bank’s licence.

 

“The Court of Appeal in a ruling on Feb. 6, 2009 ordered the re-opening of the bank and also ordered the CBN and the Nigerian Deposit Insurance Corporation to pay N100 million to the bank as damages.

 

“History was made in the Nigerian banking industry when in line with the order of the court, the licence was restored thus putting an end to seven years of agony for directors, depositors and other stakeholders of the bank,” he said.

 

According to him, the 17 years after Savannah Bank’s licence was restored, the bank has yet to commence operations.

 

The Rep said that at the time of its forceful closure, the bank had nearly 85,000 shareholders, a share capital of N1 billion and about 118 branches with depositors funds which were in hundreds of millions.

 

Aliyu said that most of the depositors whose funds were trapped in the bank for the last 17 years were either dead, bankrupt or in dire hardships after many years of depression and discontentment.

 

The house directed the committee to interface with the shareholders and the new management of the bank on possible ways to refund funds of depositors.

 

The committee will also find out from the CBN effective measures put in place to avoid the reoccurrence of what led to withdrawal of the licence of the Savannah Bank and its eventual closure in 2002.

 

The committee is to report back within two months for further legislative action.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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