Tag: Finance

CBN Mandates Reapplication for Bureau de Change Licenses
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...
Delisting of Naira from P2P Trading Platforms Underway
Economy, Finance, Information Technology, Nigeria

Delisting of Naira from P2P Trading Platforms Underway

In a supposed move to stabilize the Nigerian currency, the Securities and Exchange Commission (SEC) announced yesterday that several cryptocurrency exchanges have begun the process of delisting the Naira from Peer-to-Peer (P2P) trading platforms. This action follows a directive issued last week by the SEC in collaboration with the Office of the National Security Adviser (ONSA). The directive mandates digital currency operators to remove the Naira as a fiat currency option on their platforms. This measure aims to protect the Nigerian currency from potential manipulations that could undermine its value. The SEC's recent checks confirmed that the KuCoin platform has already started implementing this change, adjusting its technology to accommodate the delisting of the Naira. See Also: C...
Emefiele Pleads Not Guilty to Allegations of Unlawful Naira Printing
Corruption, Economy, Judiciary, News, Nigeria

Emefiele Pleads Not Guilty to Allegations of Unlawful Naira Printing

The former Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, found himself at the center of controversy as he appeared in court on Wednesday to face allegations of unlawfully printing Naira notes during his tenure. The Economic and Financial Crimes Commission (EFCC) accused Emefiele of printing N684 million Naira notes without authorization from former President Muhammadu Buhari, amounting to a total sum of N18.96 billion. Additionally, the EFCC alleged that Emefiele unlawfully approved the withdrawal of approximately N124.8 billion from the consolidated revenue fund. Emefiele, however, vehemently denied these accusations when the four-count charge was read to him before trial Justice Maryann Anenih of the High Court of the Federal Capital Territory (FCT). His lega...
Wike Left Huge Debts for Rivers State – Fubara
Economy, Finance, News, Niger Delta, Nigeria

Wike Left Huge Debts for Rivers State – Fubara

Rivers State Governor, Siminalayi Fubara, revealed that his administration inherited substantial debt from the previous government led by Nyesom Wike. The disclosure, made on Tuesday, highlighted the challenges faced by Fubara’s administration in settling outstanding payments to contractors who executed projects under Wike’s tenure. According to Governor Fubara, numerous contractors engaged by the previous administration have been demanding their balance payments, amounting to billions of naira. This revelation has intensified the ongoing feud between Fubara and his predecessor, Nyesom Wike, adding another layer to their already strained relationship. During his tenure, Nyesom Wike, often referred to as "Mr. Projects," undertook a plethora of developmental initiatives, including the...
Agbakoba, Others Head to Court Despite FG’s Suspension of Cybersecurity Levy
Finance, Judiciary, Justice, News, Nigeria

Agbakoba, Others Head to Court Despite FG’s Suspension of Cybersecurity Levy

The Federal Government has quietly withdrawn the controversial 0.5% cybersecurity levy, despite the resentment it generated. Senate Chief Whip Ali Ndume praised President Bola Tinubu for listening to the people, ordering a review of the levy, and suspending its implementation. However, the withdrawal has not appeased all critics. Socio-Economic Rights and Accountability Project (SERAP), BudgIT, and 136 concerned Nigerians have sued the Central Bank of Nigeria (CBN) at the Federal High Court in Lagos over its failure to withdraw the circular directing banks to deduct the levy from customers' accounts. Similarly, Senior Advocate of Nigeria Olisa Agbakoba said he would challenge the implementation of the levy in court. Last week, the CBN relied on the Cybercrime Act 2015 (as amended) t...
Cybersecurity Levy not Targeted at Individuals – Senate Buba
Economy, Finance, Legislature, Nigeria, Security

Cybersecurity Levy not Targeted at Individuals – Senate Buba

In response to recent concerns surrounding the Central Bank of Nigeria's (CBN) announcement of a cybersecurity levy, Senator Shehu Umar Buba, Chairman of the Senate Committee on National Security and Intelligence, representing the APC Bauchi South constituency, clarified that the levy is not targeted at individuals or ordinary bank customers. Rather, it is aimed explicitly at financial institutions and telecom companies, identified as the most vulnerable sectors to financial crimes and cyber fraud, with the goal of enhancing cybersecurity measures and national security in the country. Speaking from Abuja in a statement released on Sunday, Senator Buba, who sponsored the amendment bill, highlighted the specificity of the Cybercrime Act regarding the entities required to pay the levy, em...
Binance CEO Faults Arrest of its Execs in Nigeria
Economy, Finance, News, Nigeria

Binance CEO Faults Arrest of its Execs in Nigeria

The CEO of Binance, one of the world's largest cryptocurrency exchanges, has condemned Nigeria's recent arrest of its executives, labeling them as a dangerous precedent. This outcry comes after two of Binance's executives who were invited by the government ended up being detained. The Nigerian took this action as part of a crackdown on crypto-related activities. Richard Teng, the CEO, expressed his dismay at the detention of Tigran Gambaryan, Binance's head of financial crime compliance and a U.S. citizen. He also highlighted the case of Nadeem Anjarwalla, a British-Kenyan regional manager for Africa, who fled Nigeria in March. According to Teng, the ordeal began with meetings between Binance representatives and Nigerian authorities in January. However, matters escalated during a su...
Nigeria CBN Introduces Cybersecurity Levy on Transactions
Economy, Finance, Nigeria, Security

Nigeria CBN Introduces Cybersecurity Levy on Transactions

The Central Bank of Nigeria has issued a directive requiring banks to impose a 0.5% cybersecurity levy on transactions. This directive, conveyed through a circular released on Monday, is set to take effect within two weeks from its announcement. The circular, directed to all categories of banks including commercial, merchant, non-interest, and payment service banks, underscores the intention to combat cybercrimes in line with existing legislative frameworks like the Cybercrimes Act of 2015. This directive follows up on previous communications dated June 25, 2018, and October 5, 2018, signaling the CBN's sustained efforts to enhance cybersecurity measures within the financial sector. The decision to implement this levy is reportedly rooted in the Cybercrime Act of 2024, which mand...
Naira Declines in May Trading Session
Economy, Finance, News, Nigeria

Naira Declines in May Trading Session

In the opening trading session of May at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, the Nigerian Naira experienced a slight decline, settling at N1,402.67 to the US dollar. This marks a decrease of 0.83% from the previous close of N1,390.96 in April, according to market data from the Financial Markets Dealers Quotations (FMDQ). Throughout the trading day, the Naira witnessed fluctuations, reaching a peak of N1,445 and a low of N1,299.42 against the dollar. This significant spread of N145.58 reflects the volatility observed in the forex market. Meanwhile, the volume of dollar transactions saw a modest rise of 3.32%, totaling $232.84 million, up from $225.36 million on the preceding Tuesday. In contrast, the parallel market saw the Naira weakening further, drop...
Slip of the Naira at the I&E Window Continues on Wednesday
Economy, Finance, News, Nigeria

Slip of the Naira at the I&E Window Continues on Wednesday

In a recent development, the Nigerian Naira has witnessed a significant weakening against the United States dollar, as indicated by data released on the FMDQ securities exchange window. The Investors and Exporters (I&E) window, which serves as the official platform for forex trading, recorded a notable decline in the value of the Naira due to a substantial decrease in foreign exchange supply within the market segment. According to the data published by FMDQ, the Naira concluded Wednesday's trading at N763.17 per $1. This represents a 0.87 percent or N6.56 fall from the previous session's rate of N756.61 on Tuesday. The day started with the Naira being traded at N741.21, but it experienced a sharp decline throughout the trading session, reaching an intraday low of N815.00. This m...