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Economy

CBN Domestic Card Scheme Takes off

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The Central Bank of Nigeria, in line with its mandate to promote stability, inclusion and growth in the financial and payment system, has introduced a national domestic card scheme that becomes effective on January 16, 2023.

Although the bank is yet to disclose the procurement cost and operational charges, Nigerians will from Monday receive a new electronic card for local transactions that will be charged in Nigeria.

The card payment scheme processes payments using debit and credit cards.

The card is expected to compete with other debit cards, including Mastercard, Visa, and Verve cards operating in Nigeria.

The CBN, in conjunction with the Nigeria Inter-Bank Settlement System Plc and the Bankers’ Committee made the announcement of the new card scheme at a press briefing in October last year.

At the conference, the Managing Director of NIBSS, Premier Oiwoh, explained that the domestic card scheme would reduce the operating costs of cards in the country for both the issuers and users.

“The card would be optimised for local content solely for the Nigerian market and support micropayment and credit, e-government, identity management, transportation, health and agriculture regarding payment,” Owoh added.

The CBN’s Director, Corporate Communications Department, Mr Osita Nwanisobi, also corroborated Oiwoh’s position, explaining that Nigeria’s payment ecosystem has grown and can buoy a domestic card scheme.

“Considering the strength and breadth of its banking sector and the rapid growth and transformation of its payments system over the last decade, Nigeria is ideally positioned to successfully launch a national card scheme”, he said.

The new card, expected to unify payments across the banking landscape, is coming at a time Nigerians are fighting commercial banks over alleged dubious and duplicitous charges on their cards.

The card will be delivered through Nigeria’s central switch, the NIBSS, in conjunction with the Bankers Committee and other financial ecosystem stakeholders.

Today’s deployment will enlist Nigeria into the growing list of countries like India, Turkey, China, and Brazil that have launched similar cards for domestic use.

The CBN said, “The domestic card scheme will be an important game changer for financial inclusion in Nigeria.

“The plan is to deliver Africa’s first central bank-driven, domestic card scheme that combines a fully domestic infrastructure with international interoperability. Our plans will enable us to pivot into the largest card scheme in Africa, and amongst the biggest globally.”

However, it could not be ascertained yet if Nigerians would be able to use it for international transactions as its application is for now restricted to local shores.

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Economy

Currency Speculators in Trouble as Naira’s Resurgence Continues

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Currency speculators are in trouble as the Naira has continued to gather strength in the market in recent times.

It would be recalled that the US Dollar exchanged for nearly N2,000 in February this year, same with the Pounds, Euro and other foreign currencies.

However, the Naira has continued to gather strength and is currently hovering around N1,480 and N1,520 for a Dollar.

To that end, the Presidency has warned forex speculators to discard their Dollars, saying that the Naira will soon appreciate more and may depreciate their savings.

President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, made this call in a statement via his X handle on Thursday.

The presidential aide urged speculators to quickly dump their dollars to avoid “tears.”

He stated, “With backlog FX settled, Naira is set to appreciate further, faster. Currency speculators should quickly dump their stock of dollars to avoid sorrows and tears.”

Onanuga was reacting to the Central Bank of Nigeria, CBN, disclosure that it had cleared the $7 billion foreign exchange backlog inherited by Governor Yemi Cardoso.

Yemi Cardoso, CBN Governor

In a statement on Wednesday, CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, confirmed the settlement of all valid FX backlog claims.

Ali said the apex bank employed Deloitte Consulting, an independent auditing firm, to meticulously assess the transactions, ensuring that only legitimate claims were honoured.

“Any invalid transactions were referred to the relevant authorities for further investigation,” she stated.

The CBN’s commitment to tackling the FX backlog appears to be paying off, with the external reserves seeing a significant rise, reaching $34.11 billion as of March 7, 2024, the highest level in eight months.

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Economy

CBN Uncovers $2.4b Invalid FOREX Claims

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CBN Governor Yemi Cardoso

Central Bank of Nigeria (CBN) Governor Yemi Cardoso said the apex bank has discovered $2.4 billion invalid forex outstanding claims pressuring the naira and causing anxiety in the currency market.

Cardoso disclosed this in an interview with Arise Television on Monday.

According to Cardoso, this was uncovered during an audit by the consultant the CBN hired, which exposed a number of dubious transactions.

The CBN Governor stated that the apex bank commissioned Deloitte to look into the FX allegations to provide a true picture of the situation.

Cardoso said, according to the Deloitte assessment, up to $2.4 billion of the backlog consists of fictitious claims, with claimants in certain cases being unable to provide import documentation.

“We had had reasons to believe we needed to take a harder look at these obligations. So we contracted Deloitte management consultants to do a forensics of all these obligations and to actually tell us what was valid and what was not,” Mr Cardoso said.

“The result that came out of this was startling in a great respect. It was startling. We discovered that of the roughly $7 billion, about $2.4 billion had issues, which we believe had no business being there and the infractions on that ranged from so many things, for example not having valid import documents and in some cases entities that do not exist,” he said.

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Economy

We are Determined to Stabilise Forex and Boost Economic Growth. -FG

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By Christopher Sunday

Minister of Information and National Orientation, Mohammed Idris, has said the Tinubu administration is committed to implementing macroeconomic reforms.
aimed at curbing inflation, easing the cost of living, and stabilising the foreign exchange as part of the broader objective of boosting economic growth.

The Minister stated this on Saturday in Minna, Niger State, at the 2024 Press Week of the Niger State Chapter of the Nigeria Union of Journalists (NUJ).

Represented by the Director General of the Voice of Nigeria, Mallam Jibrin Baba Ndace, the Minister said the year 2024 holds a lot of prospects for Nigerians as some of the promising initiatives of the administration begin to bear fruit.

“Permit me, distinguished invited guests, as chief spokesperson of the Federal
Government of Nigeria, to use this hallowed platform to tell Nigerians, at this early and auspicious time of the year, that 2024 would be a great year for Nigeria as thepolicies of President Bola Ahmed Tinubu under the Renewed Hope Agenda takefirmer roots for the growth of our nation’s economic development, our invaluablehuman assets, and national security.

“The Tinubu administration will continue to implement macroeconomic reforms.
to achieve broad economic objectives of sustained economic growth aimed at
bringing down inflation, easing the cost of living, and stabilising foreign exchange
and job creation, among others,” he said.

Idris said, against the backdrop of the withdrawal of fuel subsidies, liberalising the foreign exchange regime, and the fight against corruption, the Tinubu government is showing fidelity to the rule of law and the independence of institutions, as demonstrated in the recent judgements of the courts.

The Minister explained that the recent Federal Government decision to relocate certain departments of the Central Bank of Nigeria (CBN) and the headquarters of the Federal Airports Authority of Nigeria (FAAN) to Lagos is part of a broader strategy to enhance operational efficiency, streamline processes, ensure a responsive financial system for Nigeria, and cut operations costs. He emphasised that the government’s directive aligns with global best practices and has no political motivation, however wrongly propagated.

The minister assured that no policy of the present administration would put any part of the country in a disadvantageous position. “President Bola Ahmed Tinubu’s commitment to fairness and equitable development, as outlined in his oath of office, ensures that no policy under his administration will disadvantage any region. His dedication to fostering national unity and inclusivity is reflected in policies guided by principles of fairness and equality,” he said.

The Minister, who also used the occasion to enlist the support of the media in the fight against fake news, said the hydra-headed menace of fake news is ravaging the media space. “My dear colleagues, we need to rise against the elements of fake news that are deliberately designed to misinform Nigerians,” he said.

Idris also announced to the gathering that the Federal Government would soon unveil comprehensive details of the National Values Charter, which are aimed at inculcating values in the citizenry.

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