Tag: Central Bank of Nigeria

CBN Mandates Reapplication for Bureau de Change Licenses

23May

By adminNo Comments

Economy, Finance, Nigeria

CBN Mandates Reapplication for Bureau de Change Licenses

Abuja, Nigeria – May 23, 2024: In a move aimed at restructuring the foreign exchange market, the Central Bank of Nigeria (CBN) has directed all Bureau de Change (BDC) operators in the country to reapply for new operational licenses. The CBN's directive requires compliance by June 3, 2024, to continue participating in forex operations. This announcement follows the introduction of revised Regulatory and Supervisory Guidelines for BDC Operations in Nigeria earlier this year. As part of these reforms, the CBN has set new minimum capital requirements: N2 billion for tier 1 BDC operators and N500 million for tier 2 operators. The circular, signed by Haruna Mustafa, Director of the Financial Policy and Regulation Department at CBN, outlines comprehensive reforms intended to enhance the ro...

Potential Implications of Seizing Domiciliary Accounts in Nigeria: Insights from a Financial Expert

6Feb

By adminNo Comments

Economy, Finance, News, Nigeria

Potential Implications of Seizing Domiciliary Accounts in Nigeria: Insights from a Financial Expert

As rumors swirl regarding the Nigerian government's purported intentions to seize funds held in domiciliary accounts across the nation, financial expert Kalu Ajah has stepped forward, via a post on X, to offer a comprehensive analysis of the potential ramifications. Drawing parallels with historical events and providing detailed insights into the operational dynamics of domiciliary accounts, Ajah's assessment sheds light on the risks and consequences associated with such actions. The Pakistani Example Ajah begins by invoking a significant episode from Pakistan's economic history, where the government initiated an emergency freeze on all foreign currency accounts (FCA) in May 1998. This drastic measure, aimed at safeguarding the economy, had far-reaching repercussions. "The primary i...

Emefiele: Court Gives DSS 7 Days to Either Charge or Release Him

13Jul

By adminNo Comments

Judiciary, Justice, Law Enforcement, News, Nigeria

Emefiele: Court Gives DSS 7 Days to Either Charge or Release Him

In a significant development, the Abuja Federal High Court issued a one-week ultimatum to the Department of State Security Service (DSS) on Thursday, demanding that they either charge or release the detained suspended Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. The order was delivered by Justice Hamza Muazu during a ruling on a fundamental human rights suit filed by Emefiele against the DSS and other parties. Justice Muazu acknowledged the constitutional authority of the DSS to make arrests, detain individuals, and combat internal crime. However, he emphasized that such actions must be carried out in accordance with the law. The arrest of Godwin Emefiele by the DSS took place on June 10, shortly after President Bola Tinubu suspended him from his position as the g...

CBN Grants Banks Authority to Trade Foreign Exchange Freely

14Jun

By adminNo Comments

Economy, Finance, News, Nigeria, Trade

CBN Grants Banks Authority to Trade Foreign Exchange Freely

In a significant development, the Central Bank of Nigeria (CBN) has issued authorization to commercial banks, allowing them to engage in the unrestricted trading of foreign exchange at market-determined rates. This move effectively empowers banks to sell forex based on prevailing market rates, marking a departure from the previous tightly controlled exchange rate system. Notably, some banks have already set the USD to Naira rate within the range of N699 to N750, indicating that Nigeria is transitioning towards a freely floating exchange rate regime, aligning with President Bola Ahmed Tinubu's commitment to unifying the country's exchange rates. In response to this development, Dr. Andrew Nevin, the Advisory Partner & Chief Economist of PricewaterhouseCoopers (PwC), shared his in...

<strong>CBN Sets Countdown Clock On Its Website To Mark Circulation Of New Notes</strong>

21Nov

By Mary UgwuanyiNo Comments

Economy, Finance, News, Nigeria

CBN Sets Countdown Clock On Its Website To Mark Circulation Of New Notes

The Central Bank of Nigeria, CBN, has updated a ticking clock on its website displaying the deadline for the redesigned naira notes. Recall that the apex bank had announced plans to resign N200, N500 and N1000 notes. Justifying the action, CBN governor, Godwin Emefiele, had said that the action was informed by persisting concerns with the management of the current series of banknotes and currency in circulation, - especially those outside the banking system. See Also: How Naira Redesign May Crash Dollar To N200 – EFCC Boss Emefiele explained that one of the challenges faced include significant hoarding of banknotes by members of the public, with data suggesting that more than 80 percent of the currency in circulation is outside the vaults of commercial banks. How...

30Jul

By Kosi UchennaNo Comments

Finance, News, Nigeria

How To Save Naira – CBN

The Central Bank of Nigeria, CBN, has urged Nigerians to avoid rumours in the foreign exchange market to ensure the naira does not dip further. This was said by the CBN corporate communications director, Osita Nwanisobi, in a statement issued on Friday. The statement follows the raiding of Wuse Zone 4, Abuja by operatives of the Economic and FInancia Crimes Commission, EFCC, over alleged mopping up of foreign currencies by some Bereaux De Change, BDC, operators. Reports say the raid was in an attempt to “dislodge currency speculators who are alleged to be massively mopping up available foreign currencies.” The naira recently dipped to around N7070 per dollar from about N580 at the parallel market. According to Nwanisobi, the dip was occasioned by “speculative tendencies...

Nigeria – Why We Resigned from NESG – Bank Directors

11Sep

By adminNo Comments

Economy, Finance, News, Nigeria

Nigeria – Why We Resigned from NESG – Bank Directors

It is no longer news that the NESG (Nigerian Economic Summit Group), few days ago criticized some policies adopted by the CBN in its bid to stabilize the economy. What is however news is that following this criticism and CBN's response, doubling down on its position, three members of the have NESG board resigned. The three board members that resigned are Kennedy Uzoka, Group Managing Director of UBA Plc, Adesola Adeduntan, Managing Director of First Bank and Abubakar Suleiman, Managing Director of Sterling Bank Plc. The reason they gave for their resignation was that they were not carried along by the NESG board before the release of the statement attacking CBN's policy direction. They said among other things "We were not consulted on the statement, and as directors of the NESG...